Restrictive covenants in Ontario: how they limit what you can do with your property

Summary: A restrictive covenant is a promise registered on a property's title that limits how the land can be used. Because it attaches to the title rather than to a person, it binds every future owner, not just the one who agreed to it. In Ontario, a covenant with no fixed end date is deemed to expire 40 years after it was registered, and there are ways to have one discharged sooner.

Restrictive covenants are one of the private interests a title search turns up before closing, and an overlooked one can quietly block a renovation, a home business, or a second unit. Here is what they are, how you find out about them, whether they last forever, and how they can be removed.

What is a restrictive covenant in Ontario?

A restrictive covenant is a promise, registered against the title to a property, that restricts what the owner may do with the land. It is a private arrangement between landowners, separate from municipal zoning. Because the promise "runs with the land," it binds not only the original owner who agreed to it but every subsequent buyer, whether or not they were aware of it when they purchased.

Common examples include:

• Building restrictions such as a minimum house size, a required setback, or a limit on height.

• Use restrictions such as a ban on running a business from the home or keeping certain animals.

• Design controls in newer subdivisions, where a developer sets rules on rooflines, exterior materials, or fencing to keep a consistent look.

• A bar on further subdivision or on building a second dwelling on the lot.

How does a restrictive covenant get on title, and how do you find out?

A covenant is created when an owner agrees to it and it is registered against the property's title in Ontario's land registration system. In a new subdivision, a developer often registers the same set of covenants against every lot, creating what is called a building scheme so the whole neighbourhood is held to the same standard.

You find out about a covenant the same way you find out about any interest on title: through the title search your lawyer runs before closing. That search surfaces the covenants registered against the property, and your lawyer reviews them against what you intend to do with the home. This is exactly why plans matter early. If you are buying with a renovation or a home-based business in mind, tell your lawyer, so a covenant that would block it is caught before you are committed. Our guide to what a title search is explains the wider search.

Are restrictive covenants enforceable forever?

Not in Ontario. Under the Land Titles Act, a restrictive covenant that does not fix a date or period for its expiry is deemed to have expired 40 years after the day it was registered. Ontario courts have confirmed that saying a covenant lasts "forever" does not count as fixing a period, so an open-ended covenant still runs into the 40-year limit.

While a covenant is live, it is enforced privately, not by the city. The party who benefits from it, typically a neighbouring owner or the developer who imposed a building scheme, is the one who can go to court to enforce it. That means the practical risk is not a government fine but a dispute with someone next door, which is its own reason to take a covenant seriously before you breach it.

Can a restrictive covenant be removed or changed?

Yes, through a few routes. The cleanest is a release: the owner who benefits from the covenant agrees in writing to give it up, and the release is registered on title. Where that is not possible, the Conveyancing and Law of Property Act lets an owner apply to the court to modify or discharge a covenant that has become spent, is so unsuitable that it no longer has value, or whose enforcement would be clearly vexatious. A covenant may also simply have expired under the 40-year rule.

Because removing a covenant can be slow and uncertain, it is better to identify the problem before closing than to buy on the assumption you can clear it later. Title insurance may respond to some covenant problems, but it does not rewrite the covenant or guarantee you can do what it forbids, so confirm the specifics with your lawyer rather than assuming coverage.

Restrictive covenant vs easement vs zoning

These three all limit what happens on a property, but they are different things:

In short, a covenant is a private limit you inherit with the title, an easement is a private right someone else holds over your land, and zoning is the public rulebook. A property can carry all three at once.

Frequently asked questions

Do restrictive covenants bind me if I did not agree to them?

Yes. A covenant runs with the land, so it binds each new owner regardless of who originally agreed to it. That is why your lawyer reviews the registered covenants before you close.

How long does a restrictive covenant last in Ontario?

A covenant that sets its own expiry date lasts for that period. One with no fixed period is deemed to expire 40 years after it was registered under the Land Titles Act, even if it says it lasts "forever."

Who enforces a restrictive covenant?

The owner who benefits from it, usually a neighbour or the developer that created a building scheme, not the municipality. Enforcement happens through the courts, not through a city bylaw process.

Can I have a restrictive covenant removed?

Sometimes. You can seek a release from the benefiting owner, rely on the 40-year expiry if it applies, or apply to the court to discharge or modify a covenant that is spent, unsuitable, or vexatious. None of these is guaranteed, so check before you buy.

Is a restrictive covenant the same as zoning?

No. Zoning is a public rule set by the municipality; a restrictive covenant is a private promise registered on title. They can overlap, and a covenant can be stricter than zoning allows.

About the author

Joel Fox is a co-founder and COO at Ownright. He helps run the firm's day-to-day work on Ontario residential closings, refinances, and sales, and writes regularly to demystify the parts of a transaction that most homeowners only encounter once or twice in their lives.

At Ownright, we focus entirely on Ontario residential real estate law. When we run your title search, we review the restrictive covenants registered against the property, flag any that affect what you plan to do with the home, and explain your options before you close. You can start your closing online or get in touch with any questions.

Legal references: Land Titles Act, R.S.O. 1990, c. L.5, s. 119 (restrictive covenants; a covenant with no fixed expiry is deemed to expire 40 years after registration); Conveyancing and Law of Property Act, R.S.O. 1990, c. C.34, s. 61 (modification or discharge of a restrictive covenant).

Important note: This article is not legal, financial, or tax advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.