Revised March 5, 2003

In reviewing your contract for the purchase of your new home, you are almost certain to come across "Covenants" or "Restrictions". In order to fully appreciate your rights and obligations in relation to the home you are purchasing, you should have a basic understanding of what these terms mean.

The words "Covenant" and "Restriction" are used fairly interchangeably. They are basically promises to do or not to do something in relation to the property against which they are registered.

The Covenants and Restrictions that will apply to your new home are usually contained in a schedule to the Agreement of Purchase and Sale. This schedule is generally a repetition of provisions found in subdivision agreements registered on the title to your new home. At the time of closing, these covenants will be repeated in your Deed or will otherwise be registered on your title in such a way that they will apply to it, either in perpetuity or for a limited period of time.

Covenants and Restrictions are usually common sense provisions which prevent you from doing things which will cause damage to property or depreciate property values. Fairly common covenants relate to things like not altering the drainage pattern on your own lot, not planting certain kinds of fast growing trees with pervasive root systems, and not damaging anything in the subdivision which belongs to the municipality.

If you are purchasing a dwelling that is attached to another, the property will likely be subject to Covenants and Restrictions which limit your ability to change the exterior appearance of your dwelling without the consent of the owners of the attached dwelling or dwellings. These are common sense limitations which, once again, preserve the value of your property and those of your neighbours.

In some cases, Covenants and Restrictions may prevent you from doing certain things with your property which would severely limit your enjoyment of it. For instance, if your home backs onto a ravine, there may be restrictions on title which will prevent you from installing a swimming pool.

In other cases, a Covenant may create a positive obligation. A good example would be a Covenant which requires every home owner in a subdivision to install and maintain a lawn light.

While you live in your home, you should be careful to abide by all Covenants and Restrictions. Breach of a Covenant could lead to the municipality pursuing you to force you to remedy it. It could also lead to your neighbours bringing an action against you. As well, when you go to sell your home, if you have breached Covenants you could be forced to rectify the situation prior to your closing date. In a worst case scenario, breach of a Covenant might even give a prospective purchaser the right to refuse to complete the transaction.

Before agreeing to purchase a home, you should fully understand the Covenants and Restrictions that apply to it. Your lawyer will be pleased to review them with you and answer your questions.