Old Covenants on Title Are Back in the Spotlight: What Buyers and Sellers Need to Know
With B.C.'s recent mandate for zoning changes allowing multi-unit housing in previously single-family neighbourhoods, many homeowners in North Vancouver and West Vancouver are asking: What about the old covenants still registered on title?
In many cases, these restrictive covenants were created decades ago, limiting what could be done on a property or built on a lot—often limiting development to just one single-family home. But now, with provincial legislation mandating greater density and the local municipalities starting to adopt updated zoning bylaws, these historic title restrictions are creating legal conflicts and uncertainty.
Whether you're buying, selling, or planning to redevelop a property, it's important to understand how covenants work, how they're enforced, and what recent court cases may signal for the future.
Disclaimer: This article is intended for general informational purposes only and does not constitute legal, financial, or professional advice. Every property and situation is unique. Buyers and sellers in North Vancouver, West Vancouver, and beyond should consult a qualified lawyer or real estate professional to understand how covenants or other title charges may affect their specific plans or transactions.
What Is a Covenant on Title?
A restrictive covenant is a legal condition registered on a property’s title. It can limit how the land is used, what types of structures can be built, or even regulate things like fences, trees, or rooflines. These are known as non-financial charges, because they don’t involve debt but still impose binding obligations on current and future owners.
In North Vancouver and West Vancouver, many neighbourhoods were subdivided decades ago under building schemes or development plans that registered such covenants on title—often long forgotten, but still potentially legally valid and enforceable.
Why Are These Covenants in the News Again?
In 2024, the Province of B.C. introduced new legislation requiring municipalities to adopt updated zoning bylaws to permit multi-unit housing [SSMUH] (e.g., duplexes, triplexes, townhomes) in areas previously zoned for single-family homes.
But crucially, the Province has stated that these zoning changes do not override restrictive covenants on title. This has led to legal challenges, as property owners try to enforce or remove old covenants to align with the new zoning.
Two Recent Court Cases You Should Know
Squamish – Clearwater Park GP Inc. v. Smith
In this case, homeowners attempted to stop a small townhouse project, citing a 1959 covenant that allowed only single-family homes. The court ruled that the covenant was obsolete due to significant changes in the area, including increased population and widespread non-compliance.
Key points:
- The covenant had been largely ignored for years.
- The court found no remaining entity with legal authority to enforce it.
- Squamish’s rapid growth and new zoning were relevant factors.
The court cancelled the covenant, allowing the development to proceed.
Nanaimo – Vague Covenant Language
In another case, a covenant stating homes must be “for not more than one family” was deemed too vague to enforce. The judge removed that part of the covenant, again allowing a higher-density project to move forward.
What Buyers and Sellers Need to Know
For Sellers:
If you’re selling a property with redevelopment potential—but there’s a covenant or building scheme on title that limits that potential—you need to disclose it and address it in the contract.
While buyers are typically expected to accept certain standard non-financial charges (as outlined in Clause 9 of the Contract of Purchase and Sale), restrictive covenants registered under old subdivision plans or building schemes are not automatically accepted.
In fact, unless agreed otherwise, the contract calls for title to be delivered free and clear of these types of encumbrances.
That’s why most contracts include a clause like this:
"The Buyer acknowledges and accepts that on Completion the Buyer will receive title containing, in addition to any encumbrance referred to in Clause 9 (TITLE) of this contract, any non-financial charge set out in the copy of the title search results that is attached to and forms part of this contract."
This clause ensures that both parties agree in writing to accept specific non-financial charges like covenants.
For Buyers:
If you're buying a property with plans to renovate, add a suite, or redevelop—now or in the future—it's essential to review the title search for any restrictive covenants that could limit what you're allowed to do.
If you do not want to accept a particular charge, make sure it’s addressed in the offer. Otherwise, the seller may be expected to remove it—which could be difficult or impossible, especially if there is no clear entity left to release the covenant.
Consult a real estate lawyer if:
- The covenant language is unclear;
- You’re unsure whether it conflicts with zoning;
- Or you’re planning to rely on the zoning bylaw for redevelopment potential.
Common Questions About Covenants on Title
Do zoning changes override covenants?
No. The Province has confirmed that zoning bylaw changes do not nullify private covenants. Both zoning and covenants must be considered.
Can a buyer be forced to accept a restrictive covenant?
Not under the standard contract. Unless the buyer explicitly agrees to accept it in writing (via a clause like the one shown above), a seller is generally expected to deliver clear title.
Can a covenant be removed easily?
Not usually. Removing a covenant may require:
- Consent from the original grantor or successors;
- A court application;
- Or, as recent cases show, a judicial ruling that the covenant is obsolete or unenforceable.
Final Thoughts
In light of BC's zoning changes, non-financial charges on title are no longer just legal technicalities. They can have real and lasting impacts on property use and value—especially in communities like North Vancouver and West Vancouver, where subdivision covenants are common.
If you're buying, selling, or planning to redevelop, make sure you:
- Review the title carefully;
- Understand what covenants are in place;
- Get legal advice when needed;
- And clarify in writing who is responsible for accepting or removing them.
Thinking of buying or selling? Our team can help you navigate the process, understand what’s on title, and structure your deal with clarity and confidence. Reach out anytime — we’re here to help.