.png){kind=logo}
What Is a Certificate of Pending Litigation?
A Certificate of Pending Litigation (CPL) is a legal notice registered against a property to indicate that the property is subject to a legal dispute. This notice serves to alert potential buyers, lenders, or other parties that ownership or title of the property is in question due to ongoing litigation. A CPL can prevent the sale, transfer, or further encumbrance of the property until the legal matter is resolved.
Typically used in real estate disputes, a CPL ensures that the property remains available to satisfy a potential judgment or claim.
When Is a CPL Used?
A CPL is commonly registered in the following situations:
Ownership Disputes - When parties contest the rightful ownership of the property.
Breach of Contract - Disputes arising from real estate purchase agreements or other contracts involving the property.
Fraud Allegations - Claims involving fraudulent property transfers or transactions.
Unpaid Debts - To secure the property as collateral for unsettled debts or financial obligations.
Estate Disputes - Conflicts over property distribution in wills or trusts.
Legal Requirements for a CPL
To register a CPL, the party seeking it must meet specific legal criteria:
Valid Legal Claim - The party must demonstrate a genuine legal dispute involving the property.
Court Authorization - A CPL usually requires a court order or approval.
Notice to Other Parties - The affected property owner must be notified of the CPL application.
Evidence of Connection - The property must be directly tied to the legal dispute.
Impacts of a CPL on Property
The registration of a CPL can have significant effects, including:
Restricting Transactions - The property cannot be sold, transferred, or mortgaged without addressing the CPL.
Lowering Market Value - The CPL may deter potential buyers or lenders, affecting the property's perceived value.
Prolonged Disputes - Resolving the underlying legal issue is often necessary to lift the CPL.
Legal Costs - Both parties may incur legal expenses in contesting or upholding the CPL.
How We Can Help
At ME Law, we provide comprehensive legal support in matters involving Certificates of Pending Litigation. Our services include:
Application Assistance - Preparing and filing CPL applications to protect your legal interests.
Defending Against CPLs - Challenging wrongful or excessive CPL registrations on your property.
Dispute Resolution - Negotiating settlements to resolve the underlying legal disputes effectively.
Court Representation - Representing clients in litigation to uphold or discharge CPLs.
Property Transactions - Assisting with strategies to proceed with property transactions despite a CPL.
Take the Next Step
A Certificate of Pending Litigation can significantly impact property rights and transactions. At ME Law, we provide tailored legal solutions to address CPL matters and protect your interests. Contact us today to discuss your case and secure expert legal assistance with CPLs.
Legal Rights of the Homeowner in a Power of Sale
During a power of sale process, homeowners have certain rights, including:
Right to Redeem - The homeowner can stop the power of sale by paying the outstanding mortgage balance and associated costs before the sale.
Right to Notice - The lender must provide the homeowner with a Notice of Sale at least 15 days after the default and 35 days before the sale.
Right to Surplus Funds - If the proceeds of the sale exceed the outstanding mortgage balance and associated costs, the homeowner is entitled to receive the surplus funds.
Right to Legal Representation - Homeowners have the right to legal representation throughout the power of sale process.
Right to Challenge the Sale - Homeowners have the right to challenge the sale if they believe the property was sold for an unfair price or if there were errors in the power of sale process.
Preventing Power of Sale
Preventing a power of sale is possible through several methods. Homeowners can refinance their mortgage, negotiate with their lender, or sell their home before the power of sale process begins. It’s essential to act quickly to have more options available and potentially stop the power of sale. To ensure that your power of sale process goes smoothly and without problems, contact ME Law to be consulted on all aspects of mortgage loan origination to the conclusion of a sale of the property.
ME Law will
Assess the strengths of your case and the likelihood of a favorable outcome.
Craft a comprehensive legal plan tailored to your specific business needs.
Identify and implement the most effective legal resolution to protect your interests.
Proactively address potential legal risks to safeguard your business against future challenges.
Let's talk about your case
- (416) 923-0003
- +1 (800) 891-2897
- intake@melaw.ca
- referral@melaw.ca