Encyclopedia
Covenant (title)
A registered promise on title that limits how land can be used, often in favour of the city.
For example: A title search shows a covenant limiting the use of part of a property, so the buyer checks it with a lawyer before removing subjects. (Illustration only, not a real deal.)
Official source: Land Title Act (BC Laws)
Example only, not a real client. Say you are buying land for a new building and the title search shows a covenant in favour of the city requiring a certain building design. You factor that into your plans and costs before you remove subjects.
What I’d tell a friend
Read covenants on title closely. They can limit use, design or development for years.
Why it matters to you
A covenant can limit what you build or how you use the land, and it usually binds every future owner. Read it before you plan anything.
How to use it in your deal
Buyers should read every covenant on title, not just its name in a search summary. Ask your lawyer what each requires and whether it affects your plans: building, subdividing, uses, or obligations like maintaining a landscape buffer. Check whether the municipality would agree to change or discharge one, which is possible but not guaranteed. Owners planning development should expect new covenants as conditions.
Tenants should know that a covenant can limit uses even when zoning allows them. Lenders review covenants for value impact. Restrictive covenants under the Land Title Act are often registered by municipalities during rezoning, for things like rental-only housing, green building or flood construction levels. Read each one in full before you write your offer, not after.
Mistakes I see
Reading only the summary. Assuming zoning is the only limit. Not asking about discharge.
In BC and Vancouver
the Land Title Act allows these covenants. Title documents are available from the Land Title and Survey Authority (LTSA).
Official sources: Land Title Act (BC Laws) · Land Title and Survey Authority of BC
What it is
A restrictive covenant on title is a registered agreement that limits how land can be used or built on. In BC, covenants in favour of local governments are common.
Covenants usually stay with the land when it is sold.
What to check
Get copies of the covenant documents, not just the summary on the title search, and have your lawyer explain them.
Removing or changing a covenant often needs the agreement of the party that benefits from it, which can take time. Check with a BC lawyer early if a covenant affects your plans.
Questions to ask before you sign
- What covenants are on title?
- What does each require?
- Who holds them?
- Can they be changed?
- Do they affect my plans?
Keep reading
Related terms: Title search, Easement, Statutory right of way (SRW)
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.