Common use of Deed of Covenant Clause in Contracts

Deed of Covenant. The Buyer agrees that its obligations under these Covenants must bind all future buyers of the Land and indemnifies the Seller for any costs or damages it may suffer as a result of the future buyers not being so bound. If the Buyer transfers the Land, the Buyer must obtain a covenant by deed from the transferee in favour of the Seller that the future buyer will be bound by the terms of these Covenants in the same manner and to the same extent as the Buyer. The form of covenant must be in the form of Deed Poll attached to these Covenants and the Buyer must give a copy of the signed Deed Poll to the Seller. For the avoidance of doubt, the future buyers must include a requirement that each subsequent future buyer of the Land obtains a covenant on these terms.