Registration of Agreement of Purchase and Sale

What is a certificate of pending litigation (explained plainly) |  AtlanticRide

(Ontario)

Question:

The Sellers have refused to cooperate and move out as scheduled. Is it possible to register the Agreement of Purchase and Sale on title to prevent them from selling to anyone else?

Answer:

Unfortunately, the Buyers cannot register the Agreement of Purchase and Sale on title as suggested. That option was eliminated in Ontario in 1981 with the passage of the Land Registration Reform Act.

Any such type of registration even though not permitted, if it took place would render the registrant liable to an action for “slander of title”.

There is a procedure to follow if the property doesn’t close:

1) determine whether Specific Performance as a remedy is available,

2) institute a an action claiming Specific Performance,

3) serve the documents upon the Sellers,

4) bring a motion in Court returnable in 15 Days (or as soon as possible) requesting a Certificate of Pending Litigation (CPL),

5) attend in Court on the motion,

6) assuming the CPL is granted, draft up the CPL and present it for execution by the Judge who granted the Order,

7) attend at the Court offices, pick up the executed CPL,

8) attach the CPL to a Document General register it on title.

The advantage with this approach is that there is no possibility of a sander of title action. It is the Court which has granted the Order. This is the proper procedure.

Brian Madigan LL.B., Broker

www.OnatrioRealEstateSource.com

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