Covenants and other agreements used are legal tools that ensure the protection and sustainable management of land, preserving its ecological and cultural value for future generations. These agreements may affect how land can be used, managed, or sold, but they also provide opportunities to contribute meaningfully to conservation efforts. Some agreements set out management expectations, that if met, result in stewardship payments to you. We consider potential income and obligations tied to properties in our property evaluation.
These agreements ensure that habitats are protected and managed effectively, no matter who owns the property. Some agreements such as BushBroker and Carbon agreements, and the income associated with them, enable the ongoing purchase and management of land, ensuring that precious landscapes in Australia can be restored and protected.
We’re here to guide you through these agreements so you can make informed decisions about property ownership and stewardship.
Key Agreements You May Encounter
1. Conservation Covenants
What is a Conservation Covenant?
A conservation covenant is a legally binding agreement placed on a property title to protect its ecological values. It ensures that conservation efforts, like protecting native vegetation or habitats, continue regardless of ownership changes.
Cassinia Properties partners with Trust for Nature for conservation covenants on our properties. Trust for Nature was established in 1972 through the Victorian Conservation Trust Act. Since then, they have negotiated more than 1,600 covenants which protect more than 80,000 hectares of land in Victoria.
Benefits:
- Contribute to the long-term health of Australia’s biodiversity.
- Maintain or enhance the value of your property.
- Access to expert advice and support for sustainable land management.
"There is no greater gesture a landowner can make to Victoria’s nature than placing a conservation covenant on their property." Trust for Nature
Obligations:
- Restrictions on clearing or altering native vegetation, some uses of land
- Land must be managed according to the covenant terms.
2. Carbon Agreements
What is a Carbon Agreement?
A carbon agreement is a legal mechanism through which carbon rights, such as those generated from reforestation or reduced land clearing, can be sold to third parties creating an additional income stream for the landowner.
These agreements are typically registered on the property title and require the land to be managed in specific ways that promote long-term carbon sequestration and biodiversity benefits.
If a carbon agreement is already registered on the title, the carbon credits have likely already been sold, and the associated income has been received. Some of our property restoration is funded by third parties who have purchased carbon rights from Cassinia Properties. Where this is the case, new landowners will not receive credits to sell, but will inherit the responsibility to continue managing the land in line with the agreement’s requirements.
Some properties however, may have ongoing payments associated with an agreement which would be passed on to a new landowner.
Benefits:
- Play a direct role in global climate solutions
- Help protect and restore biodiversity at scale
- In some cases, generate revenue thorough ongoing payments tied to specific management actions
Obligations:
- Maintain land use practices specified in the carbon agreement
- Monitor and report on land management actions as required
3. Bushbroker Agreements
What is Bushbroker?
Bushbroker is a government-run program in Victoria that connects landowners with developers needing biodiversity offsets. Landowners can receive payments for protecting and managing native vegetation on their property.
BushBroker facilitates the location of sites that could generate Native Vegetation Credits. These could potentially be used as offsets, on different properties to where the native vegetation is being cleared (this is called a third party offset). Details of these sites are maintained on the BushBroker Database.
From a landowner’s perspective, the BushBroker process represents an opportunity to improve biodiversity on their property, as well as to potentially generate a new income stream from their native vegetation.
For more information on BushBroker, view this Frequently Asked Questions document from the Department of Sustainability and Environment.
Benefits:
- Financial incentives for maintaining biodiversity
- Support for land restoration efforts
Obligations:
- Meet specific management and monitoring requirements
4. BushBank Agreements
What is BushBank?
BushBank is a Victorian Government initiative, managed by Cassinia Environmental. It supports conservation by acquiring and managing high-value land for biodiversity and carbon. As a landowner, this agreement may mean some monitoring may be required of planted areas. There also may be stewardship payments available for the fulfillment of contracted management requirements.
Benefits:
- Collaboration with conservation experts.
- Ensure long-term protection of critical habitats.
Obligations:
- Manage the land according to conservation goals outlined in the agreement.
Our Commitment to Transparency
At Cassinia Properties, we believe in empowering you with knowledge. We provide information regarding the benefits and responsibilities of covenants and agreements.
If you're considering purchasing a property, please explore our detailed listings.
For any queries relating to the covenants or agreements on specific properties, we suggest you speak with your solicitor or conveyancer for independent advice.
Frequently Asked Questions (FAQs)
Q: How does a covenant affect property value?
A: While some restrictions may apply, conservation covenants often enhance the property’s value for like-minded buyers who appreciate the ecological significance and stewardship opportunities. In the general property market, conservation covenants may be viewed less favourably and reduce property value to some extent. This is dependent on the property.
Q: Can I still use my land for farming or other activities?
A: It depends on the type of agreement. Areas under conservation covenant or carbon agreement do not allow for farming, though some provision may be available for crash grazing.
To fully understand if your preferred property is suitable for your intended use, please review the Section 32 Vendors Statement, accessible via each property's agent. and seek independent advice.
Q: Can I sell my property if it has a covenant or agreement?
A: Yes, properties with covenants or agreements can be sold. The new owner will inherit the responsibilities and benefits of the agreement.
