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ARTICLE · 07 JUNE 2019

Use Of Restrictive Covenants In Residential Developments

Restrictive covenants are "building schemes" that operate outside of – and in addition to – municipal zoning bylaws. The obligations associated with restrictive covenants "run with the land" and are binding on any future buyer of the property.

CanadaReal Estate and Construction

Restrictive covenants are “building schemes” that operate outside of – and in addition to – municipal zoning bylaws. The obligations associated with restrictive covenants “run with the land” and are binding on any future buyer of the property.

Historically, restrictive covenants have been used when a single person owned adjacent properties and wanted to control their use. As a condition on the sale to a new purchaser, the owner required the purchaser to promise the property would not be developed in a way that would diminish the value of the adjacent property. If the purchaser breached the covenant, the original owner was entitled to a remedy, often in the form of an injunction requiring the purchaser to bring the property back into compliance with the covenant.  

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