What is that Business related word? First correct answer gets green :)

Hi,

I'm trying to remember a simple word for a concept learned long ago.
A piece of private land (or even a business?), is sold and the seller ads a clause which says "if ever re-sold, the new owner (and all future owners) must also be bound by these terms" (.ie regarding land usage, sharing walkways with the new neighbor, if you sell half your property, etc.).

What is the word for that type of never-ending, "sustainable" clause?
Does the same concept also apply to businesses??
(((Note: I'm pretty certain "Grandfather clause" is not the answer when talking about future change of ownership, but I could be wrong))).

Thanks,
MGH

 

Hmm, transferable? The word transferable is used with warranties and whatnot; I know what you mean though; I'll put it on the old mind and see what I come up with

 

Maybe

Clause that is irrevocable during occupation of the development and retained in perpetuity

Not sure but something along these lines

Is there a lawyer in DP today?

 

Your almost there (winning so far), but years ago I heard a simple term "_____ clause" (or very similar), which describes the same concept without needing a lawyer.

Thanks again.

 

Well...
...Old friends, in the 'real world', are still nice to have sometimes. Here is the answer:

"It is normally called a deed restriction. But it is also called a
restrictive covenant. Such contracts can cover land use and other
activities. I may sell a house with a restrictive covenant saying
that the buyer will not subdivide the land. When they purchase they
agree to be restricted by this clause. But this can apply in other
ways as well. If I buy a business from an existing owner I may have a
restrictive covenant included in the sale agreement whereby (for example) the
current owner agrees not to open a similar business for so many years
or within a specific vicinity.

^^^^^^^^
The short phrase 'restrictive covenant' is what I was trying to remember. Britishguy was so close, he deserves the green.

Thanks for looking

 

Thats the word I was trying to recollect 'restrictive covenant' but the mind gets fuzzy you are spot on but thanks very much for the green gemini181

 

Well, your way sounds pretty good, I might use that phrase someday.