Beware the Restrictive Covenant

Hamilton residents dug up a 1935 land transfer agreement which placed a restrictive covenant on the land, in the hopes of forcing a Mississauga developer to halt/scale back development plans for the site.

The developer says, "As far as we’re concerned it doesn’t apply" -- such restrictions expire after 40 years.

True, but there are renewal provisions under the Act. The applicable section of the Registry Act more fully states:

Expiry of claims

113. (1) A claim that is still in existence on the last day of the notice period expires at the end of that day unless a notice of claim has been registered. R.S.O. 1990, c. R.20, s. 113 (1).

Notice of claim

(2) A person having a claim or a person acting on that person’s behalf, may register a notice of claim with respect to the land affected by the claim,

(a) at any time within the notice period for the claim; or

(b) at any time after the expiration of the notice period but before the registration of any conflicting claim of a purchaser in good faith for valuable consideration of the land. 2006, c. 34, s. 22 (4).