Covenant

A restrictive covenant is a legal obligation registered on the title of a property under the Land Title Act (RSBC 1996, c. 250) that restricts how the owner may use or develop the land. Common examples in BC include building scheme covenants controlling architectural style, no-further-subdivision covenants, environmental covenants, and access covenants. Because covenants run with the land, they bind not only the current owner but all future owners of the property.

A buyer can obtain a State of Title Certificate or a copy of the title from the BC Land Title and Survey Authority (LTSA), which will list all charges, including any registered covenants. The full text of each covenant is contained in the instrument registered at the Land Title Office, and buyers or their representatives can order copies of those instruments through the LTSA's myLTSA portal. Reviewing registered covenants before completing a purchase is a standard pre-purchase due diligence practice in BC.

Yes. Under BC land title law, covenants that are properly registered on title run with the land, meaning they attach to the property itself rather than to a specific owner. When the property is transferred, the new owner takes title subject to all registered covenants regardless of whether they were personally aware of them before purchasing. This makes it essential for buyers to review all registered charges on title before waiving conditions.

A building scheme covenant is a restrictive covenant registered on multiple lots within a subdivision to maintain consistent architectural or development standards, such as minimum home sizes, approved building materials, or prohibitions on certain structures. These covenants are typically created by a developer when a subdivision is first established and are intended to benefit all lots within the scheme. Property owners within the building scheme are bound by the restrictions and may be unable to build or renovate in ways that violate the covenant's terms.

A restrictive covenant can be removed or modified, but the process depends on the type of covenant and who holds the benefit of it. If all parties benefiting from the covenant agree, a release or modification can be registered at the Land Title Office under the Land Title Act. In cases where agreement cannot be reached, an application may be made to the BC Supreme Court under the Property Law Act (RSBC 1996, c. 377), which grants the court discretion to modify or extinguish a covenant in certain circumstances, such as where the restriction has become obsolete or causes unreasonable hardship.

An environmental covenant is a registered charge on title created under the Environmental Management Act (SBC 2003, c. 53) that restricts land use to address contamination or environmental conditions affecting the property. Unlike many other covenants, an environmental covenant in BC must have the Director of the Ministry of Environment and Climate Change Strategy as a party, giving the provincial government an ongoing role in enforcing the restrictions. Buyers of properties with environmental covenants should carefully review the restrictions, as they can significantly limit how the land may be used or developed.

A no-further-subdivision covenant is registered on title to prevent the owner from subdividing the property into additional lots, often imposed by a municipality or the province as a condition of an earlier approval or land use decision. Because this covenant runs with the land under the Land Title Act, it restricts all future owners from pursuing subdivision regardless of changes in zoning or community plans. Buyers considering a property for its subdivision potential should check for such covenants during their title review before removing subject conditions.

A registered covenant on the title of a strata lot operates independently from the strata corporation's bylaws established under the Strata Property Act (SBC 1998, c. 43). Both the covenant and the strata bylaws can apply simultaneously, and a strata lot owner must comply with whichever imposes the greater restriction on use or development. Prospective buyers of strata lots should review not only the strata corporation's bylaws and rules but also any covenants registered on the individual strata lot title obtained through the LTSA.

Under the Real Estate Services Act (SBC 2004, c. 42) and the rules administered by the BC Financial Services Authority (BCFSA), a licensee acting for a buyer has a duty to act in the client's best interests, which includes bringing material information — such as registered covenants that may affect use or value — to the client's attention. A licensee should advise the buyer to obtain and review the full text of any registered covenants as part of pre-purchase due diligence. Licensees must not provide legal interpretation of covenant terms, and clients should be directed to a BC lawyer for legal advice.

Land within British Columbia's Agricultural Land Reserve (ALR) is subject to the Agricultural Land Commission Act (SBC 2002, c. 36) and the authority of the Agricultural Land Commission (ALC), which governs permitted uses regardless of what any private covenant may say. A privately registered covenant cannot override the ALC's jurisdiction or grant permissions that the ALC has not approved, and conversely, an ALC-imposed covenant restricting non-farm use on a property adds an additional layer of obligation on the title. Buyers of ALR properties should consult the ALC directly to understand all applicable land use restrictions alongside any privately registered covenants.