In 1951, George purchased a piece of property in a cottage resort area. The property was subject to a restrictive covenant running with the land until August 1, 2050, that the property shall never be sold, assigned, transferred, or leased to any person born in the State of Israel. In January 2004, George entered into an agreement of purchase and sale with another individual. The purchaser through his solicitor submitted the following requisition on title: "in view of the fact that the purchaser herein was born in the State of Israel, I require a release from the restrictions imposed on the land, and that the restrictive covenant be struck out, voided and of no effect." George was only too happy to provide this release, however, an adjoining landowner wished to enforce the restrictive covenant. Together, George and his purchaser made an application to the courts to have the restrictive covenants struck down as against public policy. Discuss the issues raised in this case, from a perspective of the 1950s and the perspective of the 21st century and render a reasoned decision. Regardless of your answer, if the covenant was upheld, suggest an alternative way this sale may be affected without violating the covenant.
D.L.R. (Ont. H.C.)
Re Drummond Wren, [1945] 4
D.L.R. 674 (not followed).
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