TREADSTONE LAW · ONTARIO · DIGITAL LEGAL SERVICES · EST. MMXXI ·TSL
Learn/Ask a Lawyer/Real Estate/Do easements and restrictive…
Real Estate

Do easements and restrictive covenants survive a municipal tax sale, or are they extinguished too?

TSL Written by the Treadstone Law team· Updated August 2026

Generally, yes - easements and restrictive covenants are treated differently from mortgages and financial liens in a municipal tax sale and typically continue to run with the land afterward. The reasoning is conceptual: a tax sale is aimed at clearing financial claims against the owner, such as unpaid taxes, mortgages, and judgment liens, whereas an easement or restrictive covenant is usually a property interest attached to the land itself - a right of way benefiting a neighbouring lot, or a building restriction, for example - rather than simply a debt owed by the former owner.

Because these interests are meant to bind whoever owns the land, they generally are not wiped out just because ownership changed hands through a tax sale rather than an ordinary transfer. A buyer should not assume a tax sale purchase comes free of every registered restriction the way it may come free of a mortgage.

A full review of the parcel register and any survey information is still essential before bidding, since easements and covenants can materially affect what you can actually do with the property once you own it.

Key takeaways

  • Easements and restrictive covenants are generally not extinguished by a municipal tax sale.
  • They are treated as interests running with the land, unlike financial claims against the former owner.
  • A tax sale purchase can still come with real restrictions on use or access.
  • Review the parcel register and survey before bidding to understand what will still apply.
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone real estate lawyer can help.
Was this helpful?Share:

Go deeper

Still have questions?

Search 6,000 answers, or send yours to a Treadstone lawyer — we answer in plain language.

All answersStart a File →