585582 B.C. Ltd. v. Anderson (B.C. Court of Appeal)

A restrictive covenant was registered against the strata lots in a building that was operated as a resort hotel.  The restrictive covenant purported to prevent owners from renting their units to the public unless they entered into a rental pool management agreement setting out terms by which the resort’s rental manager would rent out the lots.  One of the owners challenged the validity of the restrictive covenant.  The lower Court upheld the covenant as valid.  The owner appealed and was successful on appeal.  The Court of Appeal held that the covenant was void for uncertainty, because the covenant did not provide the terms of the rental pool management agreement and “a successor in title to the unit cannot determine the terms by which the unit may be rented to the public”.