Alberta Real Estate Licensing Exam Practice · Question
A homeowner in a new subdivision reviews their Certificate of Title and notices a number of restrictive covenants regarding fence heights, exterior colours, and landscaping requirements. What is the primary purpose of these types of covenants in a subdivision?
Restrictive covenants in new developments, often referred to as building schemes, are primarily designed to enhance and preserve the aesthetic and economic valu
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Question: A homeowner in a new subdivision reviews their Certificate of Title and notices a number of restrictive covenants regarding fence heights, exterior colours, and landscaping requirements. What is the primary purpose of these types of covenants in a subdivision?
Answer options:
- To generate additional revenue for the municipal government. ✅ To ensure uniformity and maintain property values within the subdivision for the benefit of all property owners.
- To prevent any future development on the property without specific council approval.
- To allow the developer to maintain ownership rights over certain aspects of the property indefinitely.
Correct answer: To ensure uniformity and maintain property values within the subdivision for the benefit of all property owners.
Explanation: Restrictive covenants in new developments, often referred to as building schemes, are primarily designed to enhance and preserve the aesthetic and economic value of the properties within the subdivision. They achieve this by imposing consistent standards on all owners, ensuring a harmonious neighbourhood character, which benefits all properties within the scheme.
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