The Breach Of Covenant takes place whenever there is any breach of the contract or violation by the parties involved in the same. Covenants are written agreements or promises that should not be legally violated. The party breaching the covenant may be sued for damages as a result.
Breach of affirmative covenant or positive covenant is where violation of any clauses like adhering to regulations, providing audited reports, paying installments on time, etc. Lenders may require immediate loan repayment for such violations, if it is an agreement between them and borrowers/property owners. These agreements require the upholding of certain provisions by any party for maintaining the same. Breach of Restrictive Covenant means prohibition on doing certain things, i.e. taking any other loans on the property until the current one is repaid. This is a negative covenant. The borrower is subject to penalties for breaching such a covenant. The consequences include legal remedies and suits for damages and injunctions to avoid future repeats of such breaches.
This is relevant in real estate, since it refers to the breach/violation of the provisions of the covenant or written agreement or a deed of property. Hence, it may cover deeds of property owners with lenders, borrowers with lenders, sellers with buyers, and so on.
