A Covenant (or more specifically a Restrictive Covenant) is an agreement entered into by the purchaser of property and a vendor. A Covenant governs what the property owner can and cannot do with their property.

Covenants are designed to maintain the value of properties for the benefit of all residents and to provide assurance to existing and prospective land owners that the suburb will conform to the same high standard in the future.

The Covenant applies to the property itself, not an individual Homeowner as such and is therefore considered to be transferred to the new Homeowner upon sale of the property.

The original Iluka Covenants were an agreement entered into between the purchaser and estate developer (Satterley), whereby the purchaser agreed to various conditions upon purchase of property in Iluka. Covenants such as these expire after 10 years and as such this agreement between the purchaser and vendor may no longer apply in older areas of Iluka. Please note that the Covenants can vary with each stage and we suggest contacting Satterleys with any queries.

Restrictive Rules

At the 2005 Annual General Meeting of the Iluka Homeowners Association, residents of Iluka voted by a near majority to incorporate certain covenants into the Rules of the Association

Therefore, even though the original agreement between the purchaser and developer may have expired, covenants (now more correctly known as restrictive rules) remain in place with the Iluka Homeowners Association and are designed to provide residents with a mechanism to enforce compliance where their amenity is affected by the actions of another resident.

Due to uncertainties and concerns expressed regarding the enforceability of rules, the committee sought legal advice in 2012, the result of which was the preparation of the attached policy document which outlines what the committee believes to be a fair and transparent process for rule enforcement.

 The Constitution Management: Rules Policy of the Iluka Homeowners Association.

Management of Rules

We rely on the goodwill of residents to comply with the covenants and restrictive rules as agreed by residents when joining the association. It is not feasible for the committee to continually audit compliance and we rely on affected residents to report breaches that affect them (and hence affect Iluka) to the committee.

When reporting a breach of restrictive rules, please provide your full name and address for verification purposes.

Past experience has taught the committee that we cannot act upon anonymous communications received.