What Are Easements and Covenants?

Whether you are buying, leasing, developing, or selling commercial land, understanding easements and covenants is essential. These legal rights and obligations often sit quietly in the background, yet they can have a major impact on how property can be used, what restrictions apply, and even the long-term value of your investment.

At Marsons Solicitors LLP, our commercial property team regularly advises developers, landlords, and business owners on these issues. Below, we break down what you need to know in clear, practical terms. 

What Is an Easement?

An easement is a legal right that one piece of land has over another. It allows the owner of the “dominant land” to use the “servient land” in a particular way.

Common examples include:

●  Rights of way – allowing vehicles or pedestrians to cross neighbouring land.

●  Rights of drainage or utilities – allowing pipes, cables, or sewers to pass through another property.

●  Rights of support – for example, where a building relies on a neighbouring structure or retaining wall.

●  Rights of light – preventing nearby developments from blocking essential light into a building.

Easements usually “run with the land,” meaning they remain in place even when ownership changes. They can enable development—but they can also restrict it if third-party rights cut across your site. 

What Is a Covenant?

Covenants are written obligations contained in deeds or titles. They come in two main types:

Restrictive covenants (limit what you can do)

These prevent certain activities, often to protect the character or value of neighbouring land. Examples include:

●  No building above a certain height

●  No noisy or industrial use

●  No alcohol sales

●  No further subdivision of the land

Restrictive covenants often bind future owners too, meaning you may inherit obligations from decades ago.

Positive covenants (require you to do something)

These might require a landowner to:

●  Maintain shared boundaries or access roads

●  Contribute to the upkeep of private estates

●  Repair shared roofs, drainage, or structures

Positive covenants generally do not bind future owners in the same way as restrictive covenants, but they can still create ongoing financial responsibilities.

Why Easements and Covenants Matter in Commercial Transactions

Easements and covenants can significantly influence:

1. Development Potential

A restrictive covenant may prevent the type of use you intend (e.g., “no retail use” or “no external alterations”).

An easement may also mean parts of land must remain accessible to others.

2. Property Value and Marketability

Buyers and lenders may hesitate if:

●  third parties have rights to enter the land

●  the site is limited by outdated restrictions

●  there are costly positive obligations attached

These can affect finance, valuation and future resale.

3. Legal and Financial Risk

Breaching a covenant can lead to:

●  injunctions stopping development

●  compensation claims

●  delays to planning permission or construction

Similarly, preventing an easement holder from exercising their rights can lead to disputes.

4. Operational Flexibility

For businesses, unknown rights of access or hidden obligations can impact day-to-day operations, use of space, and expansion plans.

Due Diligence: What Should You Check Before You Buy or Lease?

Thorough investigation is essential. Your solicitor will typically:

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●  Review all title deeds and Land Registry entries for easements, covenants, and third-party rights

●  Scrutinise plans, historic transfers, and leases to identify hidden restrictions

●  Carry out site inspections to spot informal or unregistered rights (e.g., well-used paths)

●  Check if covenants can be varied or removed through negotiation or tribunal applications

●  Advise whether insurance is appropriate if a breach is likely or past breaches exist

●  Ensure your commercial plans comply with all rights and obligations affecting the land

Failing to spot an easement or covenant early can cause costly delays later in the transaction.

How Marsons Solicitors Can Help

Navigating easements and covenants can be complex, especially when older rights or poorly drafted documents are involved. Our commercial property team:

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●  Looks to identify risks at an early stage

●  Explains your obligations in clear, practical terms

●  Advises on negotiating variations or releases

●  Helps you manage liabilities and avoid disputes

●  Guides you through acquisitions, disposals, leases and developments with confidence

If you’re managing or considering any commercial property transaction, contact Marsons Solicitors for straightforward, experienced advice tailored to your business needs. In the meantime, why not follow us on Facebook, Instagram, LinkedIn and X to stay 

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