Managing Trustees should be aware of the effect of restrictive covenants which have been imposed on the title of property owned by the Church.  TMCP can provide guidance to Managing Trustees on the steps which they should take before they make any attempt to negotiate the release of such covenants.  TMCP will assist Managing Trustees by setting out the steps which they should take and the type of advice which, as prudent charity trustees, they need to obtain.

It is very important that before any action is taken the Managing Trustees obtain legal advice to ascertain whether or not the restrictive covenant is still enforceable and, if the covenant is enforceable to find out who has the benefit of it.  Managing Trustees should be aware that more than one party could have the benefit of the covenant.

Restrictive covenants can be released in different ways and sometimes may not need to be released at all if the covenant has become unenforceable. The most common method of release is a formal Deed of Release. However, there are problems with this approach and there is also no guarantee that entering into a Deed of Release will effectively release a covenant.  TMCP are aware of situations where Deeds of Release have been entered into and payments made by Managing Trustees but that when it comes to selling a property purchasers still require Managing Trustees to obtain indemnity insurance.

Unfortunately obtaining indemnity insurance can be much more difficult when contact has already been made with the party or parties who have the benefit of a restrictive covenant.

TMCP has produced more detailed guidance on restrictive covenants and the steps Managing Trustees should adhere to before approaching a third party about a possible release.


If you have any queries in relation to the guidance in this document please contact TMCP Legal for further assistance.


Please note that this document is to provide guidance and assistance to Managing Trustees and their professional advisers. This guidance note is general in nature, may not reflect all recent legal developments and may not apply to the specific facts and circumstances of any particular matter. Also note that nothing within the documents and guidance notes provided by TMCP nor any receipt or use of such information, should be construed or relied on as advertising or soliciting to provide any legal services. Nor does it create any solicitor-client relationship or provide any legal representation, advice or opinion whatsoever on behalf of TMCP or its employees. Accordingly, neither TMCP nor its employees accept any responsibility for use of this document or action taken as a result of information provided in it. Please remember that Managing Trustees need to take advice that is specific to the situation at hand. This document is not legal advice and is no substitute for such advice from Managing Trustees' own legal advisers.