Freedom, Society, and State - Ludwig von Mises Institute

There is another method by which such apparently
thorny problems could be handled, viz., that of restrictive
covenants. A convenant is simply an agreement
in which the parties mutually agree to abide by
certain stipulations on the use and sale of their land.
The covenant would probably be the most convenient device
for use by owners of new subdivisions, shopping
malls and the like. Thus, subdivision owners might
sell their units only to those who agree to respect
certain noise, water or pollution standards. The
covenant is an extremely flexible device that would
g rea t I Y s imp I i f y the prob I em s 0 f po I I uti 0 n con t r 0 lin a
libertarian society. As Burt points out:
Covenants can also be useful in presenting
a corporate phalanx to the non-consenting
world. A prospective polluter, in the first
place, would have to deal with only one representative
in order to obtain pollution
rights over the covenanted properties. And
this cuts two ways: a group of neighbors who
despise automobile exhaust could Improve
their ability to stop it by organizing into
an "air pollution district" such that when
aut 0 mob i 1 e poIlu t ion inc rea sed they wo u I d
on I y h a vet 0 provet hat s 0 me 0 f them we r e
invaded by fumes.
At the s imp I est I eve Is, covena n t s are
merely bilateral agreements. Inclusion of
more participants may be demanded to deal
with certain kinds of environmental conflict
(as with the air pollution district), and
more specificity or elaboration may be
needed to handle subtler kinds of goods. The
latter becomes especially important when the
law recognizes no independent method to establish
simple property in such goods as
"neighborhood character" or other esthetic
values. The peak of inclusion and elaboration
is that womb of security, the proprietary
community, wherein management of the
social aspects of living has been left
(either by deed restriction or subsequent
c 0 v e nan t) t 0 ace n t r a I c omm unit y "I and lor d ft
who res 0 I v e sal 1 i n te rna 1 envir 0 nmen tal disput
e sout 0 f co u r t . Examp I e s 0 f t his ph en om ­
enon may be seen in huge shopping malls,
hot e I com pIexes, r e c rea t ion a 1 comm unit i e s ,
and industrial parks.(72)
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