Question

Which is true about restrictive covenants?

A) They are placed by private parties in a deed.
B) They are placed by government agencies in a deed.
C) They are voidable by successive owners.
D) They are a form of tax shelter.

Answer 1

Restrictive covenants are provisions in a deed created by private parties to limit the use of property, with a historical background of discriminatory practices that have since been deemed unenforceable by courts.The correct answer is option A.

Step-by-step explanation:

The true statement about restrictive covenants is that they are placed by private parties in a deed. Restrictive covenants are used to govern the use of property, often by establishing rules for house sizes, setback lines, and aesthetic requirements.

These provisions can impact property value and the character of neighborhoods. Historically, restrictive covenants have been used discriminatively to block certain ethnic groups from purchasing homes in particular areas.

However, the U.S. Supreme Court eventually ruled that such covenants could not be enforced by courts as this would violate the Equal Protection Clause of the Fourteenth Amendment.The correct answer is option A.