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.
Let's talk about your case
- (416) 923-0003
- +1 (800) 891-2897
- intake@melaw.ca
- referral@melaw.ca