How Do I Search for Lawsuits and Litigation Against a Business Before Buying It in Ontario?
Start by searching the seller's exact legal name for judgments, then ask the seller to disclose every lawsuit in writing. A creditor with a judgment can file a writ of seizure and sale of personal property with the enforcement office, and a writ of seizure and sale of land can be filed in any county or district where the debtor may own land.
Buyers often call these execution searches. A writ search in a land registry office is printed on a Sheriff's certificate, and names match only if they are identical. A writ expires six years after it is issued unless it is renewed, so check for renewals as well as new filings. A lawsuit that has not reached judgment will not appear as a writ, so ask the seller for a written list of claims, demand letters and threatened disputes. A lawyer can confirm which court record searches suit your deal.
Also search the Personal Property Security Registration system for liens, which you can do online through ServiceOntario's Access Now. Confirm the company's corporate status using an Ontario Business Registry Certificate of Status, which costs $26. Sole proprietorships and partnerships operating under a registered business name are searched through Business Name, Limited Partnership products.
Key takeaways
- Judgment creditors can file a writ of seizure and sale of land in any county or district where the debtor may own land, so one search location may not be enough.
- Writ searches match only identical names, so search the seller's exact legal name.
- A writ lasts six years unless it is renewed, so check for renewals as well as new filings.
- Searches will not reveal every dispute, so ask the seller to disclose claims, demand letters and threatened lawsuits in writing.