Ontario Mortgage Agent Practice Exam

How does a building scheme differ from a restrictive covenant?

1. A building scheme impacts multiple properties, while a restrictive covenant affects a single property

2. A building scheme involves property resale, while a restrictive covenant does not

3. A building scheme eliminates property ownership restrictions

4. A building scheme and restrictive covenant are interchangeable terms

The correct answer is: A building scheme impacts multiple properties, while a restrictive covenant affects a single property

A building scheme and restrictive covenant are not interchangeable terms as they have different implications. A building scheme refers to a set of restrictions or regulations that are applied to multiple properties within a specific area, while a restrictive covenant applies to only one property. Additionally, a building scheme often includes regulations for property resale and ownership restrictions, while a restrictive covenant may only focus on a specific use of the property. Therefore, option A is the most accurate explanation of the difference between a building scheme and a restrictive covenant.