Legal Definitions - positive covenant

A positive covenant is a type of agreement or promise in a contract that obligates a party to do something. It requires the party to undertake certain acts on the property. For example, a positive covenant may require a property owner to erect a fence within a specified time. This is different from a negative covenant, which requires a party to refrain from doing something.

Example: In a real estate financing transaction, a borrower may make a positive covenant to the lender not to encumber or transfer the real estate as long as the loan remains unpaid.

This example illustrates a positive covenant because the borrower is promising to do something (not encumber or transfer the real estate) rather than refraining from doing something.