Covenant (Real Estate)

Explore covenants in Canadian real estate — what they are, how they affect property use, and why they’re important for land control.

Covenant (Real Estate)

July 27, 2025


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.



Types of covenants:
  • 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

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

More For You

Ontario Mondria Condos Under Receivership After $14M Water Damage Incident

Ontario Mondria Condos Under Receivership After $14M Water Damage Incident

Mondria One, set for 1607 King Street East in Clarington, Ontario. (ICON Architects Inc., Monde Development Group)

The Mondria 1 condo project in Clarington, Ontario was placed under receivership over the summer, according to filings in Ontario Superior Court, and the series of events that resulted in the receivership is more unique than most.

The project is located at 1607 King Street East and was being developed by Toronto-based Monde Development Group, which was developing a six-storey condo building with 89 units. The property, which was formerly occupied by the Pine Ridge Motel, is beneficially owned by Monde through Monde Development Group Inc.

Keep ReadingShow less
TRENDING: Ontario Mondria Condos In Clarington Under Receivership

“A Year-Long Project”: Behind The Scenes Of Nuit Blanche’s 20th Anniversary

“A Year-Long Project”: Behind The Scenes Of Nuit Blanche’s 20th Anniversary

Johnson Ngo, Programming Supervisor, City of Toronto

For one night each year, Nuit Blanche renders Toronto a de facto art gallery, with exhibits taking over streets, parks, public buildings, and unexpected corners of the city. But while Nuit Blanche can feel spontaneous to the people experiencing it, the process of putting it together is anything but.

This year’s 20th anniversary edition features more than 70 projects — a handpicked mix of new commissions and remounts of past works — selected through a process that was a little different from the past few years. Rather than working with a single artistic director or external curator, the City’s programming team worked with a four-member Curatorial Advisory Committee in an approach that Programming Supervisor Johnson Ngo says was spurred by the anniversary itself.

Keep ReadingShow less

Roughly 2.3 Years Of Supply Above $4M Is Sitting (Pretty, Probably) In West Van

​
Volodymyr Kyrylyuk/Shutterstock

In March 2025, despite a prolonged slowdown in regional sales activity, West Vancouver's median residential sale price reached $3,381,500. It was the highest level in the past two decades.

According to Sotheby's International Realty Canada, that peak reflected sellers' continued resistance to compromise on price, even with market conditions muted.

Keep ReadingShow less

This Bottleneck Is Quietly Freezing Ontario Real Estate Projects

This Bottleneck Is Quietly Freezing Ontario Real Estate Projects

Sebastian Schuster/Unsplash

You’ve cleared the planning department, secured your zoning, and finalized your urban design. Under traditional real estate assumptions, you’d be preparing to break ground.

But in Ontario’s current development landscape, you might actually be sitting on an unbuildable piece of land for the next decade.

Keep ReadingShow less

Experts: Despite Small Steps Forward, Canadian Housing Crisis Is Far From Being Solved

Experts: Despite Small Steps Forward, Canadian Housing Crisis Is Far From Being Solved
Vancouver apartment construction (Karamysh/Shutterstock)

Authored by: Grant Cameron, Senior Director of Public Affairs, RESCON

Canada’s housing market may finally be moving in the right direction, but industry leaders, economists, policymakers and housing experts agree the country remains a long way from solving its affordability and supply crisis.

Keep ReadingShow less

Verve Senior Living Buys Ashcroft’s Ottawa Ravine Seniors Complex Under Receivership

Verve Senior Living Buys Ashcroft’s Ottawa Ravine Seniors Complex Under Receivership

The Ravines Retirement Residence and Ravines Senior Suites in Ottawa. (Newmark)

A two-building seniors residential complex in Ottawa's Citiplace neighbourhood has officially changed hands following a court-ordered sale, according to filings in Ontario Superior Court and a press release.

The complex consists of two separate buildings — the 125-suite Ravines Retirement Residence at 626 Prado Private and the adjacent 138-suite Ravines Senior Suites at 636 Prado Private — along the Nepean Creek near Rideau River in Ottawa.

Keep ReadingShow less

Pure Industrial Lists 5.33-Acre Markham Industrial Facility Fully Leased To Tesla

Pure Industrial Lists 5.33-Acre Markham Industrial Facility Fully Leased To Tesla

95 Clegg Road (third from left) in Markham, Ontario. (Colliers)

Just a few weeks after a facility fully leased to TELUS was listed for sale, another facility fully leased to Tesla has now also hit the GTA industrial market, according to a new listing that recently came online.

The property is located at 95 Clegg Road in Markham, which has access to Highway 7 towards the north, Highway 404 towards the west, and Highway 407 towards the south, providing access to other parts of the Greater Toronto Area.

Keep ReadingShow less

7,500-Unit Master Plan On Former Military Air Field Breaks Ground In Prince Edward County

7,500-Unit Master Plan On Former Military Air Field Breaks Ground In Prince Edward County

Base Living community gardens rendering

Prince Edward County — land of wineries, farms, and quaint storefronts — will soon be home to one of Ontario’s largest residential developments: a 7,500-unit master-planned community located on the site of a WWII military air field. Dubbed Base31, the lands have undergone significant transformation since being purchased by developers in late 2021. But last Friday marked the biggest milestone yet, with the groundbreaking of the development’s first residential projects.

The 750-acre site is located two kilometres south of the rural town of Picton, roughly 160 km east of Toronto and just 14 minutes from the sloping dunes of Sandbanks Provincial Park. It’s a quiet place, but one with a rich history the developers are tapping into.

Keep ReadingShow less
Privacy PolicyAbout UsTerms of UseAdvertise with UsJobsContact UsRSS Feed
All rights reserved SiteMedia © 2026.