Restrictive Covenants in Alberta: What Property Owners and Developers Need to Know

Restrictive Covenants have recently made headlines in Edmonton, raising questions on how property owners can control the use and development of land. From homeowners attempting to limit infill housing to grocery retailers restricting competition, these agreements are receiving renewed attention.

Although restrictive covenants have long been recognized under Alberta property law, recent developments highlight their potential impact on property ownership, redevelopment and commercial activities.

What Is a Restrictive Covenant?

A restrictive covenant is a legal agreement that limits how land can be used or developed. These restrictions are commonly registered against a property's title under Alberta's Land Titles Act and, if legally enforceable, may continue to bind future owners even after the property is sold.

Unlike municipal zoning bylaws, which regulate land use through local government, restrictive covenants are private restrictions. This means that even where municipal zoning permits a particular development, an existing restrictive covenant may prevent the owner from proceeding.

Restrictive Covenants in Edmonton's Infill Debate

On September 15, 2026, Global News reported that Edmonton homeowners were increasingly turning to restrictive covenants to protect their neighbourhoods from multi-unit infill development.

In neighbourhoods such as Duggan and Rideau Park, homeowners have pursued restrictive covenants to limit building heights, density and other development characteristics. The article also highlighted an example in McQueen, where a developer purchased a lot previously intended for an eightplex and instead proceeded with plans for a single-family home. The developer described separately purchasing another property, placing a restrictive covenant on it and reselling it to a family.

Commercial Restrictive Covenants and Grocery Competition

Restrictive covenants are also attracting attention in Alberta's commercial real estate market.

On September 22, 2026, the Competition Bureau announced a legally binding agreement with Empire Company Limited, the parent company of Sobeys, Safeway and FreshCo, concerning restrictive covenants used in the grocery sector.

Certain grocery property restrictions prevented competing retailers from operating at particular locations, even after the original retailer had left. Under the agreement, Empire committed to stop enforcing existing restrictive covenants, creating new ones or requesting new restrictions for its benefit. The agreement also limits certain commercial lease exclusivity clauses.

This example illustrates that restrictive covenants can affect more than residential development. While they may protect commercial interests, certain restrictions can also create barriers for competing businesses and attract scrutiny under federal competition law.

What Should Buyers and Developers Consider?

Restrictive covenants can significantly affect a property's value, intended use and development potential.

For example, a purchaser intending to construct a duplex may discover that an existing covenant only permits single-family housing. Similarly, a business owner may acquire commercial property without realizing that certain activities are restricted.

Before purchasing or developing property, buyers should:

• Review the property title to identify registered restrictive covenants and other encumbrances.

• Confirm the intended use is permitted under both municipal zoning requirements and any applicable covenants.

• Seek legal advice about enforceability and available options for modification or discharge.

Identifying these restrictions before completing a transaction can help avoid unexpected costs, development delays and legal disputes.

Conclusion

Recent developments in Edmonton demonstrate the continuing importance of restrictive covenants in Alberta's real estate market. Whether used to preserve neighbourhood character or regulate commercial activities, these restrictions can have lasting consequences for property owners, purchasers and developers. For anyone purchasing or developing property in Alberta, understanding existing restrictive covenants is an important part of protecting their investment and ensuring the property can be used as intended