Under the protocol, what is a key requirement when considering covenants on the sale?

Under the protocol, what is a key requirement when considering covenants on the sale?

• A. Covenants must be punitive
• B. Covenants are optional
• C. Covenants should not be onerous
• D. Covenants must never be negotiated

Answer: (C)

Covenants attached to a sale should be reasonable and not onerous. The protocol expects any restriction on the land or obligation on the buyer to be proportionate to its purpose and not create an excessive burden for future owners. Drafting should be clear to ensure enforceability, and it's normal for seller and buyer to negotiate terms to reflect the transaction. Punitive or overly harsh covenants fail this standard, while covenants are not simply optional and they can be negotiated to achieve a fair balance.

Covenants attached to a sale should be reasonable and not onerous. The protocol expects any restriction on the land or obligation on the buyer to be proportionate to its purpose and not create an excessive burden for future owners. Drafting should be clear to ensure enforceability, and it's normal for seller and buyer to negotiate terms to reflect the transaction. Punitive or overly harsh covenants fail this standard, while covenants are not simply optional and they can be negotiated to achieve a fair balance.