What is the legal effect of a restrictive covenant?

A restrictive covenant is a legally binding provision in a property deed or lease that restricts the use of the property in some manner. The primary legal effect of a restrictive covenant is that it imposes limitations on how the property can be used and developed.

This means that landowners must adhere to the specific restrictions outlined in the covenant, which could include prohibitions on certain types of developments, limitations on building heights, or requirements to maintain specific aesthetics. Such limitations can serve various purposes, such as protecting the character of a neighborhood or ensuring that land is used in a way that aligns with community standards.

While restrictive covenants may also have indirect effects, such as potentially enhancing property values by maintaining community standards, the most direct and clear legal effect is the imposition of these limitations on property use. This is why the correct answer highlights the importance of restrictive covenants in managing and regulating the development and use of real estate.