What does a Covenant Deed establish?

A Covenant Deed primarily establishes restrictive covenants upon the land, which are legally binding agreements tied to the property that limit the way the property can be used or developed. These covenants can be established to maintain a certain character in a neighborhood or development by controlling aspects such as the types of structures that can be built, the activities that can take place on the property, or design uniformity.

While the other choices relate to property in various ways, they do not specifically define the core function of a Covenant Deed. For instance, liens on the property pertain to financial claims against the property, and transfer of property ownership refers to the conveyance aspect typically handled in different types of deeds such as warranty deeds. Rights to sell the property could be influenced by covenants but are not directly established by the covenant itself. Thus, the focus on restrictive covenants accurately reflects the primary purpose of a Covenant Deed.