Conditional covenants - wording vital must be no uncertainty. Which statement is correct?

• A. They can be vague
• B. They have no legal effect
• C. They are only for leasehold properties
• D. They must be drafted with certainty

Answer: (D)

Certainty in wording is essential for conditional covenants to be enforceable. When a condition is attached to a covenant, the event that triggers the obligation and the obligation itself must be stated clearly and precisely. If the terms are vague or open to interpretation, it becomes unclear what is required, when it must happen, or who is bound, which can render the covenant unenforceable against future owners. That is why a well-drafted conditional covenant relies on precise language so the condition and the obligation are capable of being determined and enforced.

Choosing that the covenants can be vague isn’t correct because uncertainty weakens enforceability. Saying they have no legal effect is too strong; if drafted with certainty they do have legal effect, but uncertainty undermines it. Claiming they are only for leasehold properties is incorrect because covenants can appear in freehold transfers as well. The correct idea is that they must be drafted with certainty.