Humber/Ontario Real Estate Course 2 Exam Practice

Which of the following is true about restrictive covenants on property?

1. They are unenforceable in court

2. They can limit the use of the property

3. They only apply to rental properties

4. They must be renewed annually

5. They typically provide easement rights

The correct answer is: They can limit the use of the property

Restrictive covenants, as mentioned in the correct option, can indeed limit the use of the property. These are legal agreements written into the property's deed that restrict certain uses or activities on the property. These restrictions could involve limitations on building height, architectural style, or even the purpose for which the property can be used. In comparison: A. Restrictive covenants are enforceable in court if they are properly drafted and do not violate public policy. C. Restrictive covenants are not limited to rental properties but can apply to any type of property. D. Restrictive covenants do not need to be renewed annually; once they are established, they remain in effect unless removed or modified. E. Restrictive covenants do not typically provide easement rights; easements are separate legal rights that allow someone else to use the property for a specific purpose.