Certificate of Pending Litigation in British Columbia: When It Applies

You may be in a dispute about land, or you may be buying a property and find a certificate of pending litigation on its title. Either way, a CPL can change what happens next.

This article explains in plain words who may file a CPL in British Columbia, how it affects the register, and how one is cancelled. A CPL turns on the facts of the court claim, so get legal advice early.

This article covers the law of British Columbia.

What a CPL is and who can file one

A CPL is a notice on title that a court proceeding concerning the land is under way. Under Land Title Act s. 215(1), a person who has commenced or is a party to a proceeding claiming an estate or interest in land, or who is given a right of action in respect of land by another enactment, may register a CPL against the land in the same manner as a charge.

The land must be described to the registrar's satisfaction, and the registrar sends a copy to the registered owner.

When a CPL is not allowed

The claim must concern an interest in land. Debt claims, such as for an automobile price or a real estate commission, do not qualify, and the registrar rejects CPLs based on a Personal Property Security Act notice of security interest.

• A claim that you own, or are entitled to, part of a property may concern an interest in land.
• A claim that you are owed money, without more, generally does not.
• Whether a particular claim qualifies depends on how the court pleading is written, so a lawyer should review it.

How a CPL is filed and what it does

A CPL is filed on a Form 17 Charge, Notation or Filing, selecting Certificate of Pending Litigation and attaching the approved Form 31, 32, 33 or 34 and the originating process.

Once registered, a CPL effectively freezes the register against further registrations, except those allowed under s. 216 and the s. 217 Rudland rule. The exceptions include caveats, priority or postponement agreements, and certain involuntary charges.

For a seller or buyer, this freeze is the practical problem. Because further registrations are generally blocked, a sale may not be able to register while the CPL stays on title unless an exception applies or the CPL is cancelled. A buyer who finds a CPL should speak to a lawyer before going further.

How a CPL is removed

The Land Title Act deals with cancelling a CPL in several places: generally (s. 252), if the action is discontinued (s. 253), if it is dismissed (s. 254), if neither (s. 255), on other grounds (s. 256), and by court order (s. 257).

A registered owner, or a person claiming an estate or interest in the land, may apply for an order cancelling a CPL. The application needs an affidavit giving particulars of the registration, stating that hardship and inconvenience are or are likely to be experienced, and giving the grounds. It goes to the court where the proceeding began, in that proceeding if the applicant is a party, otherwise by petition.

There is a further route for some owners. An owner whose indefeasible title or charge was registered subject to a CPL under s. 217(2)(a) or (c)(ii) may also apply to cancel it. The affidavit must address whether the pleading alleges the owner is not a good-faith purchaser for value, and the dates and times of the owner's application.

What to do next

• Order a current copy of the title, searching by its nine-digit PID; a fee applies to see the contents.
• Read the court claim to see what interest in land is alleged.
• Tell your lawyer about any pending sale, purchase or mortgage so timing can be planned.
• Keep records of how the CPL is causing hardship or inconvenience, since an application to cancel needs an affidavit on that point.
• Do not assume the claim will succeed or fail; wait for legal advice on the specific facts.

Frequently asked questions