Restrictive Covenants on Ontario Property: What Buyers Should Know Before They Sign

When you buy a home in Ontario, you inherit not just the physical property but every obligation that has been registered against it over the decades. Restrictive covenants — binding promises that restrict how land can be used — are among the most misunderstood of these inherited obligations. They can prevent you from building an addition, operating a business from home, subdividing a lot, or even installing certain features on your own land.

This article explains what restrictive covenants are, how to find them in the Ontario land registry, when they are enforceable, and the limited circumstances in which they can be modified or removed.

What Is a Restrictive Covenant?

A restrictive covenant (sometimes called a "negative covenant" or just "covenant on title") is a legally binding obligation registered against real property that restricts how the landowner may use or develop the land. Unlike a positive obligation (you must do something), a restrictive covenant prohibits the landowner from doing something.

Classic examples include:

• Building restriction: "No structure shall be erected on the lands other than a single-family detached dwelling."
• Setback requirement: "No building shall be erected within X feet of the front lot line." (This may co-exist with or exceed the zoning setback.)
• Use restriction: "The lands shall be used for residential purposes only."
• Size restriction: "No dwelling shall have a gross floor area of less than X square feet."
• Architectural controls: Restrictions on materials, height, style, or exterior finishes.

How Covenants End Up on Title

Restrictive covenants typically originate when a developer or large landowner subdivides land and wants to ensure a consistent standard across the new lots. They are registered in the chain of title at the time of original subdivision, often dating back decades.

Covenants also arise in private transactions — one neighbour agreeing to restrict their lot as a condition of a boundary agreement, or a seller imposing a restriction as part of a sale.

The "Running With the Land" Principle

The most important thing about restrictive covenants is that they "run with the land" — meaning they bind every future owner of the burdened land, not just the original party who agreed to them. You do not need to personally sign or agree to a covenant for it to bind you; buying the property is sufficient.

For a covenant to run with the land and bind successors, four conditions are traditionally required:

1. The covenant must be negative (a restriction on use, not a positive obligation)
2. The original parties must have intended the covenant to run with the land
3. The covenant must "touch and concern" the land (affect its use or value)
4. The benefiting land (if any) must be identifiable

How to Find Covenants Affecting Your Property

Your lawyer's title search will identify registered covenants on the parcel identification number (PIN). Covenants appear as registered instruments in the land registry, and the content of the covenant document specifies the restriction.

Some covenants are obvious from the registered instrument title ("Covenant and Agreement re Residential Use"). Others may be buried in older instruments — a plan of subdivision document, a historic transfer, or a development agreement — that are registered by reference and require retrieval of the underlying document.

Tip for buyers: If you intend to renovate, add a secondary suite, operate a business, or make any significant change to the property, ask your lawyer to retrieve and review the full text of any registered covenants before you waive conditions.

Are Old Covenants Always Enforceable?

Not always. Restrictive covenants can lose their force in several circumstances:

Abandonment or Changed Conditions

Courts in Ontario will not enforce a restrictive covenant if the character of the neighbourhood has changed so substantially that the restriction's purpose has been defeated. For example, a covenant requiring residential use only may be unenforceable in an area that has been entirely rezoned and redeveloped for commercial use — even if the covenant text still appears on title.

Discriminatory Covenants

The Ontario Human Rights Code renders void any covenant that restricts the ownership, occupation, or use of land on the basis of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, age, marital status, family status, or disability. Such covenants cannot be enforced, even if they remain registered on title.

No Benefit to Enforce

A restrictive covenant is enforceable only by the party who holds the "benefit" — typically the owner of the land the covenant was meant to protect. If the benefiting party has consented to the breach, no longer owns the benefiting land, or cannot be identified, enforcement may not be possible.

Expiry or Modification by Agreement

Some covenants are drafted with an expiry date or an amendment mechanism (e.g., a neighbourhood builders' committee). Rare, but they exist.

How to Modify or Remove a Restrictive Covenant

Application Under the Conveyancing and Law of Property Act / Courts of Justice Act

Ontario courts have jurisdiction to modify or extinguish restrictive covenants where continued enforcement would be contrary to the public interest or where the covenant's original purpose has been fulfilled or defeated. Applications are brought in the Superior Court and require notice to anyone who might assert the benefit of the covenant.

This is not a simple or inexpensive process. It requires legal argument, evidence about neighbourhood character, and — in some cases — neighbour consent or evidence of non-enforcement.

Committee of Adjustment / Minor Variance

If a covenant requires a minimum setback or restricts building size, and your planned improvement violates only that covenant (not the municipal zoning), a minor variance from the Committee of Adjustment can authorize your improvement — but it does not extinguish the covenant. The two processes are independent.

Agreement with the Beneficiary

If the party who holds the benefit of the covenant is identifiable and willing to negotiate, you can seek a formal modification or discharge by agreement, registered as an amendment to the original instrument. This is only practical where the beneficiary is a specific, identifiable neighbouring landowner rather than a class of subdivision lot owners.

Frequently asked questions