What are 'restrictive covenants' in leasehold agreements?

Restrictive covenants in leasehold agreements refer to specific limitations placed on the use of a property. These covenants are designed to control how a property can be used or what modifications may be made, ensuring that certain standards are maintained and that the character of a neighborhood or development is preserved. By including these limitations in the lease, property owners can prevent actions that may lead to disputes or devaluation of the property. Such restrictions can include prohibitions against commercial activities in a residential area, requirements for maintaining certain aesthetic standards, or limitations on construction.

The other choices do not capture the essence of restrictive covenants. Financial agreements between leaseholders speak to the transactional aspect of leasing rather than the limitations on use. Mandates for property maintenance focus on upkeep rather than restrictions on activities. Legal conditions for renewing a lease pertain to the agreement's terms and renewal processes, which are separate from the concept of restrictive covenants that specifically address usage limitations.