Running With The Land

Definition of 'Running With The Land'


The rights and covenants in a real estate deed that remain with the land, regardless of ownership. When rights and covenants run with the land, they are tied to the property (land) and not to the owner, and will move from deed to deed as the land is transferred from one owner to another.

Investopedia explains 'Running With The Land'


There are two types of covenants that are said to run with the land. An affirmative covenant states something that property owners are obligated to do. A restrictive covenant specifies something that property owners must refrain from doing. Owners are said to be "burdened" by affirmative covenants and must "enforce" restrictive covenants. An example of an affirmative covenant that would run with the land is that all homes must be at least a specified square footage. An example of a restrictive covenant that would run with the land might be that no livestock are permitted on the property. Covenants that run with the land are intended to guide orderly land development.



comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer to government spending rather than business or individual spending. When referring to accrued federal government deficits, the term "national debt” is used.
Trading Center