Covenant (Real Estate)

What is a Covenant?

A covenant in real estate is a legally binding promise or restriction placed on a property’s use, typically recorded on title and enforceable by law or contract.

Why a Covenant Matters in Real Estate

In Canadian property law, covenants help regulate land use, protect property value, and maintain community standards.

• Restrictive covenant: limits property use (e.g., no further subdivision)
• Affirmative covenant: obligates action (e.g., maintain fence)

Covenants run with the land, meaning they bind future owners until removed or modified legally.

Example of a Covenant in Action

The title search revealed a restrictive covenant prohibiting the construction of additional dwellings on the lot.

Key Takeaways

• Legal promise tied to property use
• Can restrict or require certain actions
• Binds current and future owners
• Recorded on property title
• May require legal process to change

Related Terms

• Easement
• Encumbrance
• Title Search
• Deed
• Zoning