Easements and Covenants — What Property Buyers Need to Know (Australia 2026)
Easements and covenants are interests registered on a property title that affect how land can be used. They are permanent — they transfer with the land and bind every future owner. Understanding what is on the title before you buy can prevent costly surprises.
What Is an Easement?
An easement is a registered right for someone other than the landowner to use a part of the land for a specific purpose. The land that carries the burden is called the burdened land (also “servient tenement”); the land or entity that benefits is the benefiting party (also “dominant tenement”).
Common types of easements in Australian residential property:
| Easement type | What it means |
|---|---|
| Drainage easement | Council or water authority can access the land to maintain underground pipes or drainage infrastructure |
| Service (utilities) easement | Power, gas, water, or telecommunications infrastructure runs through the land |
| Right of way (access easement) | A neighbour or the public has the right to cross the land to access another property |
| Sewerage easement | Sewer pipes run under the property |
| Electricity easement | Power lines (overhead or underground) run through the land |
| Positive covenant | Owner must do something (e.g., maintain a fence, contribute to shared driveway maintenance) |
| Batter and fill easement | Neighbouring development affects the land’s earth profile |
How Easements Affect Your Use of the Land
Easements can significantly affect what you can do with the land:
Building restrictions: You generally cannot build over an easement without specific consent from the benefiting authority (council, water utility, etc.). This can significantly constrain where on the block a structure can be placed — relevant for extensions, granny flats, pools, and garages.
Access obligations: A right of way means others can cross your property — even if it is inconvenient. You cannot obstruct or fence off an access easement.
Maintenance obligations: Some easements require the landowner to maintain the infrastructure on their land (e.g., a shared stormwater drain).
Excavation restrictions: Work near a drainage or sewerage easement typically requires approval from the utility authority.
Identifying Easements Before You Buy
Title search: Easements are noted on the title — your conveyancer’s title search will identify any registered easements.
Deposited Plan (DP) / survey plan: The DP shows the boundaries of the lot and typically marks the location and dimensions of any easements on the land. Your conveyancer can obtain the DP from the land registry.
Physical inspection: Large underground services easements are sometimes physically marked with surface markers. On-site inspection may also reveal utility pits, access lids, or other infrastructure visible on the ground.
Can an Easement Be Removed?
Easements can be extinguished — but it requires the agreement of the benefiting party (and court order in some cases). This is:
- Rarely straightforward
- Often not possible if the easement serves an ongoing utility purpose
- Requires legal assistance and potential compensation
Do not purchase a property relying on the assumption that an inconvenient easement will be removed.
What Is a Covenant?
A covenant is a registered obligation attached to the title that controls how the land is used. Unlike an easement (a right for others), a covenant is a restriction or obligation on the landowner.
Types of covenants:
| Covenant type | Example |
|---|---|
| Restrictive covenant | “No dwelling shall be constructed of materials other than brick or stone” |
| Positive covenant | “The owner must maintain the boundary fence” |
| Building covenant | Minimum setbacks from boundaries; minimum floor area; materials restrictions |
| Use covenant | Property cannot be used for commercial purposes |
Covenants are particularly common in:
- Estate developments — developers impose covenants to maintain estate character (no metal roofs, no dual occupancies, minimum house sizes)
- Older residential areas — historical covenants from subdivision decades ago
- Properties near airports — height restrictions
Restrictive Covenants — Key Points
See also Restrictive Covenants on Property — What They Mean.
- Restrictive covenants are permanent and bind all future owners
- They cannot be ignored — breach of covenant can result in legal action by the benefiting owner
- Modifying or extinguishing a restrictive covenant requires court proceedings (Land and Environment Court in NSW; VCAT in VIC; Supreme Court in other states)
- Not all old covenants are enforceable — some may be obsolete, technically void, or unenforceable for various reasons (requires legal advice)
Frequently Asked Questions
I found an easement on the title — should I be worried?
Not necessarily. Many easements (drainage, sewerage, power) are common across millions of properties and have no practical daily impact on the owner. The key questions are: does the easement affect where you can build? Does it limit your plans for the property? Discuss with your conveyancer.
The easement covers a large part of the backyard. Can I build over it?
Likely not without written consent from the relevant authority. Contact the benefiting authority directly to understand their requirements — some utilities will issue a Build Over Easement Consent with conditions (maintaining access, specific construction methods); others will not permit construction over the easement at all.
I want to buy an investment property and the title shows a right of way. Does this affect value?
A right of way that runs through the middle of usable yard space may reduce value — or at least affect the property’s development potential. A right of way along a boundary strip with no practical impact may be immaterial. Value impact depends heavily on where and how the easement is positioned.
Related Due Diligence Guides
- Title Search Australia — What It Is and How to Do It
- Restrictive Covenants on Property — What They Mean
- Property Due Diligence Checklist Australia
- Property Due Diligence Hub
This article provides general information about easements and covenants in Australian property. The legal effect of specific easements and covenants requires professional advice. Engage a licensed conveyancer or solicitor before buying. Find one through MoneySmart.