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BC Real Estate Trading Services Licensing Exam Practice · Question

A developer acquired a large parcel of land in Squamish, BC, and plans to divide it into 50 residential lots. To ensure that 10 specific lots adjacent to a protected environmental zone remain unbuilt and serve as a communal green space for the entire subdivision, the developer wants to establish a legal mechanism that binds all future owners of the 50 lots and is difficult to remove. Which of the following is the most appropriate and legally sound method to achieve this specific outcome?

A restrictive covenant, properly worded and registered on the titles of the 10 lots, would legally bind all future owners of those lots to the restriction (no b

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Question: A developer acquired a large parcel of land in Squamish, BC, and plans to divide it into 50 residential lots. To ensure that 10 specific lots adjacent to a protected environmental zone remain unbuilt and serve as a communal green space for the entire subdivision, the developer wants to establish a legal mechanism that binds all future owners of the 50 lots and is difficult to remove. Which of the following is the most appropriate and legally sound method to achieve this specific outcome?

Answer options: ✅ Register a restrictive covenant on the titles of the 10 lots prohibiting construction and designating them as common green space for the benefit of the other 40 lots.

  • Establish an implied easement by necessity over the 10 lots for the benefit of the other 40 lots.
  • Create a series of personal contracts with each initial buyer of the 40 lots, detailing their right to use the green space.
  • Simply include a clause in the Contract of Purchase and Sale for each of the 40 lots stating the intention for the 10 lots to be green space.

Correct answer: Register a restrictive covenant on the titles of the 10 lots prohibiting construction and designating them as common green space for the benefit of the other 40 lots.

Explanation: A restrictive covenant, properly worded and registered on the titles of the 10 lots, would legally bind all future owners of those lots to the restriction (no building) and grant an enforceable right for the benefit of the other lots' owners, making it a durable solution for communal green space.

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