What is the difference between a restrictive covenant and a building scheme?

British Columbia, Canada


The following excerpt is from West Shore Laylum Management Ltd. (Re), 2013 BCSC 2080 (CanLII):

Many of the cases considered, though factually similar to the case at bar, deal with building schemes as opposed to restrictive covenants. In Gubbels v. Anderson, [1994] B.C.J. No. 230 (S.C.), the court defined the difference between these two at paras 16 and 17: A restrictive covenant involves a relationship where one property is subject to restrictions for the benefit of another property. This relationship, by its nature, interferes with the free use of the land and is the reason why such agreements are strictly interpreted. A building scheme, however, involves a community of interests. Under a building scheme all landowners share similar burdens and enjoy benefits relating to these limitations on property use.

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