Real Estate Council of Alberta Fundamentals Practice Exam

What do restrictive covenants impose on a property?

1. Financial claims for property improvements

2. Permissions for land use modifications

3. Restrictions on use or architectural details

4. Rights to share land with others

The correct answer is: Restrictions on use or architectural details

Restrictive covenants impose specific limitations on how a property can be used or modified, which is why the correct answer is the one related to restrictions on use or architectural details. These legal obligations are established within property deeds and can dictate various aspects, such as the types of structures that can be built, aesthetic elements like color schemes or architectural styles, and even maintenance obligations or prohibitions on certain activities. For example, a restrictive covenant might prevent a homeowner from painting their house an unconventional color or might require them to maintain their lawn in a certain manner. This is meant to preserve the character of a neighborhood or uphold property values, as consistent aesthetics and use can enhance the overall appeal of an area. The other options involve financial claims, permissions for modifications, or rights to share land, which do not align with the fundamental nature of restrictive covenants. These covenants are specifically about imposing restrictions rather than providing rights or permissions.