What is the term for a formal agreement between parties regarding activities on a parcel of land?

The term that refers to a formal agreement between parties regarding activities on a parcel of land is a covenant. A covenant is a legal stipulation or promise embedded in a deed or lease that dictates how the land can be used or what activities are allowable. These agreements can cover a wide range of land-use issues, including development restrictions, maintenance obligations, and specific usage rules that must be adhered to by the parties involved.

Covenants are significant in real estate because they help to enforce certain standards within a community or property development, ensuring that all parties respect the agreed-upon uses of the land. Unlike a general contract, which can pertain to various agreements across different contexts, a covenant specifically addresses land use and is often binding on subsequent owners of the property, thus ensuring long-term adherence to the agreed terms.

In contrast, a contract is a broader term that can include any agreement between parties, not limited to real estate or land-use matters. A clause is typically a specific provision within a contract, and a provision refers to a particular stipulation within a legal document but does not inherently carry the same implication of land usage that a covenant does.