A homeowner's association in a suburban community implements a rule that prohibits the installation of commercial signage on residential properties. What category of restrictive covenant does this rule fall under?
This rule limits the use of property by disallowing commercial signage, categorizing it as a negative restrictive covenant. Negative covenants restrict certain actions or uses on the property.
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What is a negative restrictive covenant?
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How do restrictive covenants affect property values?
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What other examples of negative restrictive covenants exist?