Humber/Ontario Real Estate Course 3 Exam Practice

If a property restriction prevents the use of the property for a specific purpose, what is it an example of?

1. A right-of-way

2. An access agreement

3. An easement

4. A restrictive covenant

5. A lien

6. A zoning by-law

The correct answer is: A restrictive covenant

A property restriction that limits the use of the property for a specific purpose is known as a restrictive covenant. This legal mechanism is often placed in property deeds to ensure that certain conditions or restrictions are adhered to, ultimately preserving the character or value of the property and the surrounding area. Restrictive covenants can specify a range of limitations, such as prohibiting certain types of structures, commercial activities, or even specific colors for paint. Their focus is on the use of the property, ensuring that it aligns with the intentions of previous owners or the community’s standards. Understanding the function of restrictive covenants is crucial, especially for real estate agents and buyers, as they dictate what is permissible on a property, influencing property rights and potential future uses. In contrast, the other options involve different legal concepts. A right-of-way pertains to a legal right to pass through someone else's land, an access agreement typically refers to arrangements for ingress and egress, an easement grants a limited use of another's property without transferring ownership, a lien represents a financial claim against a property, and zoning by-laws regulate land use and development within municipalities. Each of these has its specific application, distinct from the concept of a restrictive covenant.