Humber/Ontario Real Estate Course 4 Exam Practice

When title to a property includes restrictions on exterior colour and satellite dishes, what legal term applies?

1. Easement

2. Encumbrance

3. Restrictive Covenant

4. Right of Way

5. Building Code

6. Zoning Regulation

The correct answer is: Restrictive Covenant

The term that applies when title to a property includes restrictions on exterior colour and satellite dishes is a restrictive covenant. This legal concept refers to a clause in the deed or lease that limits how the property can be used or what alterations can be made. Restrictive covenants are typically designed to maintain the character of a neighborhood or uphold certain standards, which is essential in preserving property values and ensuring community aesthetics. For example, in residential developments, a developer might place restrictions on exterior modifications to keep a uniform appearance, such as prohibiting certain colours for house painting or limiting the visibility of satellite dishes. These covenants are enforceable against current and future owners of the property, provided they are properly recorded and comply with applicable laws. Other terms, such as easements and encumbrances, generally refer to interests in property that allow others to use it or impose limitations, but they do not specifically address restrictions imposed by a property owner regarding aesthetics or use. Right of way refers to the legal right to pass through property, unrelated to aesthetic restrictions. Building codes and zoning regulations pertain to broader health, safety, and land-use planning matters rather than individualized property title restrictions.