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Legal Covenant Waiver

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LEGAL COVENANT WAIVER

This Legal Covenant Waiver (Effective Date: ) is made and entered into by and between Party A: , having a principal address at , and Party B: , having a principal address at .

RECITALS

WHEREAS, the parties are parties to an agreement entitled dated (the "Agreement");

WHEREAS, the Agreement contains certain covenants, restrictions or obligations described as follows:

WHEREAS, Party A and Party B wish to set forth the terms and conditions upon which one or more of the covenants in the Agreement shall be waived, in whole or in part, as set forth below.

NOW, THEREFORE

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

1. DEFINITIONS

In this Waiver, unless the context requires otherwise, capitalized terms shall have the meanings ascribed to them in the Agreement. For the avoidance of doubt:

"Waived Covenant" means the covenant or obligation described in the recital above and further identified as:

2. WAIVER

Subject to the terms and conditions of this Waiver, Party A hereby unconditionally and irrevocably waives, releases and relinquishes for the benefit of Party B the Waived Covenant to the extent set forth herein. This Waiver affects only the rights and remedies of the parties as expressly set forth and does not constitute an amendment to any other provision of the Agreement except as expressly stated.

3. SCOPE AND DURATION

The waiver granted in Section 2 shall be limited to the following scope: .

The waiver shall commence on and shall terminate on unless earlier terminated pursuant to this Waiver.

4. CONDITIONS TO EFFECTIVENESS

This Waiver shall become effective only upon satisfaction of the following conditions precedent:

5. CONSIDERATION

In consideration for the waiver set forth herein, Party B shall provide the following consideration to Party A: . If monetary, amount: $ .

6. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants to the other that: (a) it has full corporate power and authority to enter into this Waiver and to perform its obligations hereunder; (b) the execution and delivery of this Waiver and the performance of its obligations do not and will not violate any applicable law, rule or contractual obligation; and (c) each signatory below is duly authorized to execute this Waiver on behalf of the party for which such signatory signs.

7. INDEMNITY

Each party shall indemnify, defend and hold harmless the other party from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of or resulting from any breach of its representations, warranties or obligations under this Waiver.

8. NO FURTHER WAIVER

Except as expressly set forth in this Waiver, nothing in this Waiver shall be construed as a waiver of any other right, remedy or covenant under the Agreement. No waiver by either party of any breach or default shall be effective unless in writing and signed by the waiving party.

9. NOTICES

All notices required or permitted under this Waiver shall be in writing and sent to the addresses set forth below or to such other address as a party may designate in writing:

10. AMENDMENTS; WAIVERS

This Waiver may not be amended, modified or supplemented except by an instrument in writing signed by each party. No failure or delay by any party in exercising any right shall operate as a waiver of such right.

11. GOVERNING LAW; VENUE

This Waiver shall be governed by and construed in accordance with the laws of the State of , without regard to principles of conflicts of law. The parties submit to the exclusive jurisdiction of the courts located in that State for any action arising out of or relating to this Waiver.

12. ENTIRE AGREEMENT; SEVERABILITY

This Waiver, together with the Agreement as expressly amended hereby, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous negotiations, agreements and understandings. If any provision of this Waiver is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

13. COUNTERPARTS

This Waiver may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Facsimile or electronic signatures shall be effective for all purposes.

EXECUTION

The parties have executed this Waiver as of the Effective Date first set forth above.

Party A:

By:

Date:

Party B:

By:

Date:

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What a Legal Covenant Waiver Is and when it’s used

A Legal Covenant Waiver is a written instrument in which one party temporarily or permanently relinquishes enforcement of a specific covenant or restriction found in a deed, lease, loan agreement, or covenant running with the land. Waivers are used to modify rights without rewriting the primary agreement, often to permit a specific action (for example, a temporary use, alteration, or access) that would otherwise breach the covenant. Properly drafted waivers identify the affected covenant, describe the scope and duration of the waiver, and specify any consideration, conditions, or recording requirements needed to give notice to third parties.

Why a Covenant Waiver matters for risk and title clarity

A clear covenant waiver minimizes disputes, preserves title marketability, and documents temporary exceptions to existing obligations. It creates a written record for lenders, title companies, and future owners so parties and third parties know the precise scope and duration of any permitted deviation from the original covenant.

Why a Covenant Waiver matters for risk and title clarity

Who typically prepares and signs a covenant waiver

Identify stakeholders early and confirm authority to bind each party before completing or recording the waiver to avoid enforceability issues.

  • Property owners and tenants seeking temporary relief from a use or maintenance covenant, often in connection with renovations or temporary structures.
  • Lenders or beneficiaries agreeing to limited nondisturbance or forbearance to allow a borrower or grantee to take a specific action.
  • Homeowners associations and boards granting temporary variances or waivers for a single lot or homeowner.

Core elements every professional covenant waiver should include

A complete waiver should be precise about who gives the waiver, who receives it, which covenant is affected, the effective period, any conditions or consideration, and recording or notice instructions so third parties can rely on it.

Parties identified

Full legal names and capacities for grantor(s) and grantee(s); specify business entity type and jurisdiction for organizations.

Covenant described

Exact citation to the agreement, deed, or section number and short excerpt so the affected provision is unmistakable.

Scope and duration

State whether waiver is temporary, conditional, or permanent and provide clear start and end dates or triggering events.

Consideration

Any payment or reciprocal promise should be stated in detail; nominal consideration may be sufficient in some jurisdictions.

Recording instructions

Specify whether the waiver will be recorded in the county land records and include legal description or parcel ID for indexing.

Signatures and attestations

Signature blocks for authorized signatories, notarization or witness lines if state law or title requirements demand them.

Essential information elements to include

Grantor identity: Full legal name
Grantee identity: Full legal name
Property ID: Parcel or legal description
Covenant citation: Deed book/page
Effective dates: Start and end
Notary block: Acknowledgement line

Step-by-step: complete and execute a covenant waiver

Follow these sequential steps to prepare, approve, and record a Legal Covenant Waiver with minimal delay.

  • 01
    Draft the waiver: Identify covenant, scope, term, and consideration; draft precise language.
  • 02
    Confirm authority: Verify signers have power to bind the grantor or grantee.
  • 03
    Obtain signatures: Sign, date, and notarize or witness as required.
  • 04
    Record and distribute: File with county recorder and send copies to title insurer, lender, and affected parties.

Where to send or record the completed waiver

A completed waiver typically must be delivered to title counsel, the lender or beneficiary, and recorded with the county recorder when it affects recorded covenants.

  • Title company: Provide a signed recorded copy for title insurance updates.
  • County recorder: Record the waiver against the property index when required.
  • Lender/beneficiary: Forward executed waiver to any mortgagee or lienholder.
  • Affected parties: Notify homeowners association or adjacent owners as appropriate.

How to set up an online workflow for this waiver

Configure a clear signing order, required authentication, and one final step for recording or download.

Field Configuration
Signing order Grantor then grantee then notary
Authentication Email + SMS code recommended
Notarization Use remote online notarization where permitted
Final copy Automated PDF with certificate

Digital signing, notarization, and file delivery considerations

Ensure the chosen workflow produces a tamper-evident PDF and retains records to satisfy ESIGN, UETA, and any state recording requirements.

  • Audit trail: Timestamp, IP, and action log
  • Authentication: Email, SMS, or knowledge-based options
  • File formats: Signed PDF, retrievable audit report

Legal risks and potential consequences of an incorrect waiver

Contract Voidance: Waiver may be void
Title Issues: Cloud on title
Recording Rejection: Recorder return
Lender Default: Loan covenant breach
Tax Exposure: Incorrect consideration reporting
Fraud Allegations: Enforceability challenge

Common mistakes to avoid when preparing a waiver

  • Failing to cite the original instrument precisely, which can make the waiver ambiguous or unindexed in land records.
  • Allowing an unauthorized signer to execute the waiver; verify corporate resolutions, power of attorney, or HOA authority.
  • Skipping recording when the waiver affects a recorded covenant, leaving subsequent purchasers unaware of the exception.
  • Using vague duration or scope language (for example, 'temporary as needed') instead of fixed dates or objective triggers.

Practical tips for accurate and efficient completion

Adopt standardized language and checklist controls to speed approvals and reduce title exceptions.

Use precise instrument references
Include book, page, or instrument number and a succinct quotation of the covenant's operative clause to make indexing and title searches reliable.
Confirm signatory authority
Obtain corporate resolutions, signatures by authorized officers, or notarized powers of attorney where an entity signs to reduce later challenges to authority.
Coordinate recording early
Plan for county recorder processing time and confirm required attachments (legal description, payment of recordation tax) to avoid rejection and delays.
Preserve audit evidence
When using electronic signing, retain the audit trail, signed PDF, and notarization recording to support enforceability and defend against disputes.

Typical authorized signers and their roles

Owner / Individual

An individual owner signs in their personal capacity; ensure the signature matches the name on the recorded deed and use notarization if county practice requires it.

Corporate Officer / Trustee

An officer, manager, or trustee signs on behalf of an entity; include title, attach corporate resolution or trust certification, and notarize where required.

Timing considerations and typical processing expectations

Plan for internal approvals, notarization, and county recording windows to avoid delays across real estate and lending workflows.

Internal review time:

2–10 business days depending on counsel and lender

Notarization scheduling:

Same day to 3 business days depending on availability

County recording:

1–14 business days depending on county workload

Title company update:

1–5 business days after recorded instrument is returned

Effective notice:

Recorded waivers give constructive notice upon recording

Key milestones from negotiation to recorded waiver

Track these sequential milestones to ensure the waiver is effective and discoverable by interested third parties.

01

Negotiate Terms

Parties agree scope, duration, and consideration for the waiver.

02

Draft Document

Prepare precise waiver language and attachments.

03

Obtain Signatures

Execute and notarize as required by jurisdiction.

04

Record and Distribute

File with recorder and provide copies to title and lenders.

How a Covenant Waiver differs from related document types

Compare common instruments to determine whether a full amendment, release, or waiver is appropriate for the situation.

Criteria Waiver Release
Primary use temporary exception permanent removal
Recording often recorded typically recorded
Consideration required often yes usually yes
Third-party consent may be required usually required

Vendor comparison for eSignature and workflow needs

Compare starting price, trial availability, bulk-send support, audit trails, HIPAA support, and envelope constraints when evaluating eSignature vendors for covenant waivers.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Trial available Trial available Trial available Trial available
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions about Legal Covenant Waivers

Answers to common procedural and legal questions to help avoid delays and enforceability problems.


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