What is that Business related word? First correct answer gets green :)

Discussion in 'General Business' started by gemini181, Dec 2, 2006.

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  1. #1
    Hi,

    I'm trying to remember a simple word for a concept learned long ago.
    A piece of private land (or even a business?), is sold and the seller ads a clause which says "if ever re-sold, the new owner (and all future owners) must also be bound by these terms" (.ie regarding land usage, sharing walkways with the new neighbor, if you sell half your property, etc.).

    What is the word for that type of never-ending, "sustainable" clause?
    Does the same concept also apply to businesses??
    (((Note: I'm pretty certain "Grandfather clause" is not the answer when talking about future change of ownership, but I could be wrong))).

    Thanks,
    MGH
     
    gemini181, Dec 2, 2006 IP
  2. drewbe121212

    drewbe121212 Well-Known Member

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    #2
    Hmm, transferable? The word transferable is used with warranties and whatnot; I know what you mean though; I'll put it on the old mind and see what I come up with :)
     
    drewbe121212, Dec 2, 2006 IP
  3. britishguy

    britishguy Prominent Member

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    #3
    Maybe

    Clause that is irrevocable during occupation of the development and retained in perpetuity

    Not sure but something along these lines

    Is there a lawyer in DP today?
     
    britishguy, Dec 2, 2006 IP
    gemini181 likes this.
  4. gemini181

    gemini181 Well-Known Member

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    #4
    Your almost there (winning so far), but years ago I heard a simple term "_____ clause" (or very similar), which describes the same concept without needing a lawyer.

    Thanks again.
     
    gemini181, Dec 2, 2006 IP
  5. gemini181

    gemini181 Well-Known Member

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    #5
    Well...
    ...Old friends, in the 'real world', are still nice to have sometimes. Here is the answer:

    "It is normally called a deed restriction. But it is also called a
    restrictive covenant. Such contracts can cover land use and other
    activities. I may sell a house with a restrictive covenant saying
    that the buyer will not subdivide the land. When they purchase they
    agree to be restricted by this clause. But this can apply in other
    ways as well. If I buy a business from an existing owner I may have a
    restrictive covenant included in the sale agreement whereby (for example) the
    current owner agrees not to open a similar business for so many years
    or within a specific vicinity.

    ^^^^^^^^
    The short phrase 'restrictive covenant' is what I was trying to remember. Britishguy was so close, he deserves the green.

    Thanks for looking :)
     
    gemini181, Dec 2, 2006 IP
  6. britishguy

    britishguy Prominent Member

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    #6

    Thats the word I was trying to recollect 'restrictive covenant' but the mind gets fuzzy you are spot on but thanks very much for the green gemini181:D
     
    britishguy, Dec 2, 2006 IP
  7. gemini181

    gemini181 Well-Known Member

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    #7
    Well, your way sounds pretty good, I might use that phrase someday. :D
     
    gemini181, Dec 2, 2006 IP