What Is a Certificate of Pending Litigation on Estate Property in Ontario?
A certificate of pending litigation, often called a CPL, is a court-issued notice registered against land that warns buyers and lenders that a lawsuit claims an interest in that property. Starting a proceeding about an interest in land is not notice to people outside the case until the court issues a certificate and it is registered. It can be registered under either the Land Titles Act or the Registry Act.
A CPL is not automatic and it is not permanent. The court may discharge it if the claimant is really claiming money instead of an interest in the land, has no reasonable claim to the land interest, or does not move the case forward with reasonable diligence. It may also discharge it if other security adequately protects the claimant, or on any other just ground.
This matters because the type of claim affects whether land is really at stake. For example, where a claim is based on unjust enrichment for services, a money award calculated on a fee-for-service basis is the default remedy, and a proprietary remedy such as a constructive trust is exceptional. Whether a CPL fits your situation depends on the facts, so a lawyer can confirm before you act.
Key takeaways
- Starting a proceeding about an interest in land is not notice to people outside the case until the court issues a certificate and it is registered.
- A certificate can be registered under either the Land Titles Act or the Registry Act.
- The court may discharge a certificate if the claimant really claims money, has no reasonable claim to the land interest, or does not pursue the case with reasonable diligence.
- Where an unjust enrichment claim is based on services, a money award on a fee-for-service basis is the default remedy and a constructive trust is exceptional, so a lawyer can help you judge whether a certificate fits your facts.