Church Property - Part 2

• Key point 7-13. A restrictive covenant is a restriction on the use of property. Such restrictions often are noted in deeds to property, but they may appear in other documents as well. Such restrictions apply to a church's use of its property.

* A Texas court ruled that a church had to be evicted from its property because its use of the property for religious purposes violated a "restrictive covenant" in a prior deed. An oil company owned and operated an oil pipeline terminal that served as a bulk fuel storage facility. Adjacent property owners complained about soil and groundwater contamination, and sued the oil company for damages. A settlement of these claims was reached that imposed on the oil company a duty to clean up the property and monitor the success of its efforts. The settlement agreement also required the creation of a "restrictive covenant" in the ...