- A CPL is a document registered on the title of a specific property, flagging to the world — including any potential buyer, lender, or title searcher — that a lawsuit is underway claiming…
- A CPL is not a general-purpose tool for any lawsuit that happens to involve a person who owns property.
- The underlying claim must assert an interest in the property.
When a lawsuit involves a claim to a specific piece of real estate — a disputed sale, a partnership breakup where one party owns the building, a family dispute over a jointly held house — there is often a practical worry underneath the legal one: what stops the other side from simply selling or refinancing the property while the case is still going through the courts?
In Ontario, the answer is often a Certificate of Pending Litigation, commonly shortened to a CPL. This article explains what a CPL does, when it is available, and what happens once one is registered.
What a Certificate of Pending Litigation Does
A CPL is a document registered on the title of a specific property, flagging to the world — including any potential buyer, lender, or title searcher — that a lawsuit is underway claiming an interest in that property. Once registered, it effectively freezes the property's marketability: most buyers will not close a purchase, and most lenders will not advance a mortgage, against a title that shows an active CPL.
It does not transfer ownership, and it does not decide who ultimately wins the underlying dispute. It simply preserves the status quo — the property stays put, unsold and unencumbered by new financing, until the litigation is resolved or the CPL is discharged.
When a CPL Is Available
A CPL is not a general-purpose tool for any lawsuit that happens to involve a person who owns property. It is specifically tied to claims where the lawsuit itself asserts an interest in that particular property — not simply a money claim against someone who happens to own real estate.
Typical situations where a CPL may be appropriate include:
- A dispute over who is the rightful owner or beneficial owner of a property
- A claim that a property was fraudulently transferred to defeat a creditor
- A partnership or corporate dispute where the property is a partnership or corporate asset in question
- A family law or estates dispute involving competing claims to a specific property
- An agreement of purchase and sale dispute, where the buyer is seeking to enforce their right to complete the purchase (specific performance)
By contrast, an ordinary debt claim — "you owe me money" — does not usually support a CPL on its own, even if the debtor happens to own real estate, because the lawsuit is not claiming an interest in that specific property.
How the Process Generally Works
- The underlying claim must assert an interest in the property. The CPL is registered in connection with a civil action already started (or being started) in the Superior Court of Justice.
- The certificate is registered on title at the relevant land registry office, putting the world on notice of the pending claim.
- The registered owner is notified. Once registered, the other side becomes aware their property is now effectively frozen for sale and refinancing purposes.
- The other side can move to discharge it. A property owner who believes the CPL was wrongly registered — because the underlying claim does not genuinely assert an interest in the property, or is without merit — can bring a motion asking the court to discharge (remove) it, sometimes on terms such as posting security in its place.
- It stays in place until the litigation resolves or is discharged. If the plaintiff succeeds, the CPL can support the ultimate remedy (for example, an order requiring transfer of the property, or a share of its value). If the plaintiff does not succeed, or the claim is dismissed or discontinued, the CPL is typically removed.
What Registering a CPL Can and Cannot Do
A CPL can:
- Prevent a sale from closing while it remains registered
- Prevent a lender from advancing new mortgage financing secured against the property
- Preserve a plaintiff's practical ability to recover an interest in the specific property if they win
A CPL cannot:
- Guarantee the plaintiff will win the underlying case
- Transfer ownership or any interest in the property to the plaintiff on its own
- Be registered simply for leverage in an unrelated dispute — courts are alert to CPLs used as pressure tactics rather than genuine property claims, and can order a wrongly registered CPL discharged, sometimes with cost consequences for the party who registered it
Frequently asked questions
Does a CPL stop the owner from living in or using the property?
No. A CPL restricts sale and refinancing of the property — it does not evict anyone or restrict ordinary use and occupation while the litigation continues.
Can a CPL be registered without telling the property owner first?
Yes, in most cases a CPL can be registered without advance notice, since notifying the owner in advance could prompt a rushed sale or refinancing before the certificate is in place. The owner learns of it once it appears on title and can then move to challenge it.
What if the other side disputes that my claim really involves the property?
They can bring a motion to have the CPL discharged. The court will look at whether the underlying claim genuinely asserts an interest in the specific property, and may remove the CPL — sometimes requiring the plaintiff to post security instead — if it decides the claim does not support one.
Is a CPL the same as a mortgage or a lien against the property?
No. A CPL is a notice of a pending court claim to an interest in the property, not a charge that secures a debt the way a mortgage or a construction lien does. It works differently and follows its own registration and discharge process.
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