What is a restrictive covenant on property?

A restrictive covenant is a legally binding condition registered on a property title that limits how the property can be used. Covenants are typically placed by developers, previous owners, or municipalities to maintain the character of a neighbourhood, protect property values, or enforce specific standards. Common examples include restrictions on building height, minimum lot coverage, prohibiting certain uses (no commercial activity), fencing requirements, and architectural style requirements. They run with the land, meaning they bind all future owners — not just the original parties.

Are restrictive covenants enforceable in Canada?

It depends. Many historical covenants are still technically registered on titles but may not be enforceable — either because they are outdated, discriminatory (e.g., race-based covenants, which are void under human rights law), or because the character of the neighbourhood has changed so substantially that enforcement would be unreasonable. Courts consider the original intent, current conditions, and whether the party seeking enforcement has standing. Newer covenants, especially those created by developers in recent subdivisions, are generally enforceable.

How do I find out if there are restrictive covenants on a property?

Your real estate lawyer will identify restrictive covenants during the title search conducted before closing. Covenants are registered on the property title at the provincial land registry office. You can also check yourself by ordering a title search through your provincial land registry (e.g., Teranet in Ontario, LTSA in BC, SPIN in Alberta). Title insurance policies typically provide coverage for violations of existing covenants you were not aware of — but they do not remove the covenant.

Can restrictive covenants be removed?

Yes, but the process varies by province and can be difficult. Options include: applying to a court to have the covenant discharged or modified (if it is obsolete or unreasonable), obtaining agreement from the party who benefits from the covenant (the covenantee) to release it, demonstrating that the covenant is no longer enforceable due to changed neighbourhood character, or showing that the covenant is discriminatory or contrary to public policy. In Ontario, application is made under the Conveyancing and Law of Property Act.

Do restrictive covenants affect property value?

They can — both positively and negatively. A covenant that prevents commercial development in a residential neighbourhood can protect property values. Conversely, a covenant that prevents you from building an addition, adding a secondary suite, or subdividing the lot can reduce the property flexibility and development potential, which may negatively impact value. The impact depends entirely on what the covenant restricts and what you want to do with the property.

Restrictive Covenants on Property in Canada: What They Restrict & How to Remove Them (2026)

Restrictive covenants are one of the most overlooked aspects of property ownership. They can affect everything from the colour of your fence to whether you can build a second unit on your property.

What restrictive covenants are

A restrictive covenant is a condition registered on a property’s title that restricts how the property can be used. Unlike zoning bylaws (which are imposed by municipalities), covenants are typically private restrictions created by:

Source	Common Examples
Developers	Minimum house size, architectural style, no outbuildings, fencing restrictions
Previous owners	No commercial use, no subdivision of the lot, no specific activities
Municipalities	Park land dedication, environmental protection, public access easements
Homeowner associations	Maintenance standards, landscaping requirements, colour restrictions

Common types of restrictive covenants

Covenant Type	What It Restricts	Example
Building restrictions	Size, height, setback, materials	Must be single-storey; minimum 2,000 sq ft
Use restrictions	Permitted activities on the property	Residential use only; no home-based businesses
Architectural standards	Design and appearance	Must use brick exterior; no flat roofs
Subdivision restrictions	Dividing the lot	Lot may not be severed or subdivided
Fencing restrictions	Type, height, material of fencing	No chain-link; maximum 4-foot front fence
Accessory structure restrictions	Outbuildings and additions	No detached garage; no secondary dwelling
Environmental restrictions	Preservation of natural features	Cannot remove trees over 10 cm diameter; no building within 30 m of waterline
Parking restrictions	Vehicle storage and parking	No commercial vehicles; no RV storage in front yard

How covenants differ from zoning

Feature	Restrictive Covenant	Zoning Bylaw
Created by	Private parties (developer, previous owner)	Municipality
Registered on title	Yes	No — applies to all properties in the zone
Enforced by	The party who benefits (covenantee) or successors	Municipal enforcement
Modified by	Court order or agreement of parties	Municipal council (bylaw amendment, variance)
Can override the other?	Must comply with whichever is more restrictive	Must comply with whichever is more restrictive

If zoning allows a secondary suite but a covenant prohibits it, you cannot build it without first removing the covenant.

How to find covenants on a property

During a purchase

Step	Who Does It	When
Title search	Your real estate lawyer	During the condition period or lawyer’s review
Title insurance	Insurance company reviews title	At closing
Land registry search	You (or your agent)	Before or after offering

Self-search options by province

Province	Land Registry	How to Search
Ontario	Teranet / OnLand	Online search by PIN or address (fee per document)
British Columbia	LTSA (Land Title and Survey Authority)	myLTSA portal (fee per search)
Alberta	SPIN2 (Spatial Information System)	Online title search (fee per search)
Quebec	Registre foncier du Québec	Online search (fee per search)
Manitoba	Property Registry (TPR)	In-person or through agent
Saskatchewan	Information Services Corporation (ISC)	Online search
Atlantic provinces	Provincial registries	Varies — through lawyer or online portals

Enforceability of covenants

Not all covenants are enforceable. Courts consider:

Factor	Enforceable?	Example
Still relevant to neighbourhood character	Likely	Minimum lot size in an area of similar-sized lots
Neighbourhood has fundamentally changed	May not be	“Residential only” in an area now mixed commercial/residential
Discriminatory	Not enforceable	Race, religion, or ethnicity-based restrictions (void under human rights law)
Benefiting party still exists	Likely if yes	Developer still active in the subdivision
Benefiting party unknown or dissolved	Harder to enforce	Original developer no longer exists
Reasonable and serves a purpose	Likely	Architectural standards in a cohesive subdivision
Overly burdensome with no practical benefit	May not be	Restriction that serves no purpose in modern context

Historical discriminatory covenants

Canada has a troubling history of race-based restrictive covenants that prohibited the sale of property to people of specific races or ethnicities. These covenants are:

Void and unenforceable under the Canadian Charter of Rights and Freedoms and provincial human rights legislation
Still sometimes visible on historical title documents
Some provinces have introduced legislation to allow removal of these covenants from title records (BC passed such legislation in 2024)

How to remove or modify a covenant

Option 1: Agreement with the covenantee

If you can identify and contact the party who benefits from the covenant:

Approach them with your request
Offer compensation if appropriate (common in developer-held covenants)
Have your lawyer draft a release or modification document
Register the release on your title

Option 2: Court application

If the covenantee cannot be found or refuses to agree:

Province	Legislation	Process
Ontario	Conveyancing and Law of Property Act, s. 61	Apply to the Superior Court of Justice for discharge or modification
British Columbia	Property Law Act, s. 35	Apply to the Supreme Court of BC
Alberta	Law of Property Act	Apply to the Court of King’s Bench
Quebec	Civil Code of Quebec	Application through the courts

Courts may discharge or modify a covenant if:

The covenant is obsolete or outdated
The character of the neighbourhood has changed
Enforcement would be unreasonable
The covenant no longer serves its original purpose
The covenant is discriminatory

Option 3: Title insurance

Title insurance does not remove a covenant, but it can protect you from financial loss if:

You unknowingly violate an existing covenant
A previous owner violates a covenant and you face enforcement action
The covenant was not discovered during the title search

Impact on common homeowner plans

What You Want to Do	Covenant That May Block It	Workaround
Build a secondary suite	“Single-family residential use only”	Seek covenant removal
Add a second storey	Height restriction or setback requirement	Seek modification
Subdivide the lot	“Lot may not be subdivided”	Seek covenant removal
Run a home business	“Residential use only”	Some businesses may be incidental enough to not trigger
Install a specific fence type	“No chain-link fencing”	Comply or seek modification
Build a detached garage	“No outbuildings”	Seek covenant removal
Park a boat / RV	“No recreational vehicle storage”	Comply or install screened area

Due diligence checklist for covenants

Ask your lawyer to specifically identify all registered covenants during title search
Read each covenant carefully — understand exactly what it restricts
Determine who the covenantee is (who can enforce)
Assess whether the covenant affects your planned use of the property
If it does affect your plans, investigate removal options before closing
Consider whether title insurance covers your risk
Factor covenant limitations into your purchase price negotiation