CanadaCan a commercial tenant enforce restrictive covenants against a landlord?
Yes, a commercial tenant can enforce restrictive covenants against a landlord in Canada if the covenant is clear, intended to benefit the tenant, and properly registered — as confirmed by the Supreme Court of Canada in Russo v. Field.
What the Law Says
Canadian property law recognizes that restrictive covenants in commercial leases can run with the land and bind successors in title — but only if certain legal requirements are met.
Restrictive covenants in commercial leases are not automatically enforceable against landlords or future owners. To be binding on successors (including subsequent tenants or purchasers), the covenant must meet common law requirements: it must touch and concern the land, intend to benefit the tenant’s premises, and be properly recorded (e.g., by registration of the lease or covenant).
While no single federal statute governs this issue, provincial land registration statutes (e.g., Ontario’s Land Titles Act or British Columbia’s Land Title Act) require registration of interests affecting title for them to be enforceable against third parties. A restrictive covenant will generally only bind later purchasers or tenants if the underlying lease — containing the covenant — is registered on title.
What Courts Have Said
The Supreme Court of Canada has affirmed that commercial tenants may enforce restrictive covenants against landlords when those covenants are clearly intended for their benefit and properly protected.
The Court held that a landlord’s promise not to lease adjoining space to competing beauty salons was enforceable by the tenant because the covenant was intended to benefit the tenant’s business, touched and concerned the leased premises, and was protected by registration of the lease — making it binding on the landlord and its successors.
What to Do
Ensure the restrictive covenant is clearly written in the lease and expressly states it benefits your business.
Register the lease (or a notice of the covenant) on title with the provincial land registry office.
Confirm registration is effective before the landlord signs any new leases for competing uses.
Act promptly if a breach occurs — seek injunctive relief or damages through court application.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.