What Are Restrictive Covenants?
by Melanie Swailes on behalf of the Development and Transportation Committee
You may have read about residents in some Calgary communities considering Restrictive Covenants (RCs) for their properties, and a few Brentwood residents have asked for more information. RCs are complicated, requiring legal consultation and advice. The BCA does not have any legal expertise or capacity to advise our residents, but part of our mandate is to make you aware of development matters and RCs are relevant to planning and redevelopment.
What is a Restrictive Covenant (RC)?
An RC is a voluntary private contract between neighbours which each owner registers against their land titles: it creates a private property right that runs with the land and is passed on to subsequent property owners. Each property owner can only place an RC on their own property, so the goal is usually to try to have many neighbours placing the same RC conditions on their street or area. RCs allow residents who are part of that RC to set their own rules regarding redevelopment on included properties, typically to limit the density that can be built on the property or to preserve the unique residential character of specific areas.
Why Does There Now Seem to Be Greater Interest in RCs?
In large part, this is due to the response to some of the changes that City Council’s approval of blanket rezoning in May 2024 might bring to an area. Blanket rezoning approval means that most lots can be redeveloped to a much higher density and building footprint without requiring a zoning change. A typical 50 x 110-foot lot could have an existing single-family home replaced with as many as eight dwelling units (including secondary suites) in a three-storey building (R-CG).
What Is the Cost?
For residents in other communities who have signed onto RCs, the initial cost seems to be about $500 to $750 per property. This covers the legal fees and disbursements related to drafting and registering the Restrictive Covenant.
However, there is a potential future cost of a defence fund to enforce an RC since the City of Calgary does not acknowledge RCs and will issue building and development permits without regard to an existing RC. Restrictive covenants are administered through Alberta Land Titles, not the City’s municipal planning departments, meaning that enforcement needs to be through civil court. What happens if an owner ignores the RC? Those who have signed onto the RC can bring an application to the Court for enforcement, for example, seeking a court injunction against a Development Permit that does not comply.
Pros and Cons of RCs
A restrictive covenant is a “burden” on the land, meaning that it restricts what the landowner can do on the property. For example, the RC may specify that it would prevent landowners from subdividing their lands or building anything other than a single-family home. This also impacts future owners of your property. For example, a person who buys or inherits the land would be prevented from replacing the house on the property with a higher-density development.
However, an RC may make a property more desirable for an individual or family to purchase. It increases certainty for purchasers who wish to live on a low-density residential street and seek greater assurances that future developments will follow the same low-density development pattern. An RC may discourage a developer from purchasing a property with an RC if the intention is to build a multi-plex building form because there will be time-consuming and expensive delays if the RC is taken to court for enforcement. Even if there are gaps in the properties with RCs, it would likely prevent the accumulation of multiple properties for large development projects (also known as land assembly), for example, buying three adjacent properties and combining them into one large complex or sets of townhouses.
What Are Other Communities Doing?
It’s important to note that some communities already have some or a large portion of their properties with existing RCs. For others, the potential for an eight-unit building next door has prompted them to organize efforts for RCs in their community. (Note that these are individual residents organizing the RCs, not the respective Community Associations). If you are interested in learning more, check out these websites:
• Lake Bonavista – https://www.bonavistarc.com/
• Chinook Park-Kelvin Grove-Eagle Ridge – Some very detailed information on their website https://www.ckerc.ca/
• Varsity – Varsity residents dig into the details of restrictive covenants to limit density | LiveWire Calgary
If you are interested, read and learn more about RCs. Talk to your neighbours. Organize a street meeting. If there is interest, then maybe RCs are something you wish to consider.
After six years as the Development and Transportation Committee Chair, I will be stepping down from my role over the next year. We need some new, energetic community residents to step forward on behalf of our great community! Contact the BCA at [email protected] or at 403-284-3477.
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