What do restrictive covenants in a property deed dictate?

Restrictive covenants in a property deed are legally binding stipulations that dictate certain limitations on how a property can be used. These covenants are intended to maintain the character and value of a neighborhood or community by preventing certain activities or developments that could disrupt the agreed-upon standards among property owners. For example, a restrictive covenant might prohibit commercial activities in a residential zone, ensuring that the area remains predominantly residential in nature.

While conditions for property improvements, allowable property value increases, and maintenance responsibilities can be aspects that are addressed in various legal documents or homeowner association rules, they do not fall under the typical scope of restrictive covenants. The primary focus of restrictive covenants is about what one cannot do with the property, rather than detailing conditions for investment or upkeep. Thus, the correct answer captures the essence of what restrictive covenants fundamentally entail in real estate transactions.