Deed Restriction

Understand deed restrictions in Canadian real estate — what they are, how they affect property use, and their role in land control.

Deed Restriction

July 27, 2025


What is a Deed Restriction?

A deed restriction is a condition written into a property’s deed that limits or prescribes how the property can be used, binding future owners until legally changed.

Why Deed Restrictions Matter in Real Estate

In Canadian property law, deed restrictions help preserve neighbourhood character, control land use, or uphold community standards.



Examples:
  • Prohibiting commercial use of residential property
  • Limiting building height
  • Restricting types of exterior finishes



Understanding deed restrictions helps buyers assess property limitations before purchase.

Example of Deed Restrictions in Action

The deed restriction prevented the owner from adding a second storey to the house.

Key Takeaways

  • Limits or prescribes property use
  • Written into the deed
  • Binds current and future owners
  • Helps preserve community standards
  • Requires legal action to change

Related Terms

Additional Terms

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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

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