Real Estate Litigation

When a property deal or an ownership arrangement breaks down, the amounts involved are usually large and the deadlines are usually close. We act for buyers, sellers, owners and co-owners in residential and commercial real estate disputes in Ontario.

What these disputes usually involve

Real estate disputes are contract disputes with features of their own. The property is often treated as unique, deposits are held in trust, ownership is recorded in the land registry, and mortgages give lenders their own enforcement rights. Those features shape both the risks and the remedies.

We act in disputes involving:

  • agreements of purchase and sale that did not close, and the deposits paid under them;
  • defects and statements about a property that come to light after closing;
  • mortgages, including private and vendor take-back mortgages, and the power of sale process;
  • title, including fraudulent transfers or mortgages and competing claims to ownership;
  • co-owned property that the owners cannot agree to keep or sell;
  • boundaries, encroachments and easements between neighbours; and
  • emergencies on or just before closing day.

Disputes with builders over new homes and condominiums have their own page: Pre-Construction Disputes.

How we approach a real estate dispute

  1. Put the documents in order. The agreement, amendments, waivers, notices, correspondence and the parcel register usually tell most of the story.
  2. Find the deadlines. Closing dates, notice periods in the agreement, mortgage enforcement periods and the limitation period come first.
  3. Explain the options. A clear demand, negotiation, a motion, an action or an application each carries different costs, timelines and risks. You decide with that in view.
  4. Protect the property where needed. If there is a risk the property will be sold or mortgaged before the dispute is decided, we consider a certificate of pending litigation or an injunction.

Remedies a court may grant

  • Damages for breach of the agreement, including a loss on resale and reasonable carrying costs
  • Return or forfeiture of a deposit
  • Specific performance, in limited cases
  • A certificate of pending litigation registered on title
  • An injunction preventing a sale, a closing or other steps
  • Correction of the land register after fraud
  • An order for the sale of co-owned property, followed by an accounting between the owners

Topics in this area

Questions we are often asked

Do I need a litigation lawyer, or can my real estate lawyer handle it?
Real estate lawyers handle transactions. Once a deal has failed, or a disagreement is heading toward court, a litigation lawyer handles the demand letters, court proceedings and enforcement. The two often work together, and we coordinate with the lawyer who handled your transaction.
How long do I have to start a claim?
In Ontario, the basic limitation period for most claims is two years from the day the claim was discovered. In real estate, practical deadlines often arrive much sooner, such as a closing date, a notice period in the agreement, or a step a lender takes under a mortgage. It is safer not to wait.
Can I stop the other side from selling the property while the dispute is decided?
Sometimes. A court can order a certificate of pending litigation to be registered on title where the claimant shows a reasonable claim to an interest in the land itself, not only a claim for money. In urgent cases an injunction may also be available.
What is specific performance?
It is an order requiring a party to complete the transaction rather than pay damages. Courts grant it only where money would not be an adequate remedy, and the party asking for it must show it was ready, willing and able to close.
Which court hears real estate disputes?
Most are heard in the Ontario Superior Court of Justice. A claim only for money within the Small Claims Court limit can be brought there, but Small Claims Court cannot make orders about title to land.

Guides

General information about Ontario law, not legal advice about your situation. Time limits can be short; if you are unsure, speak with a lawyer promptly.

Speak with us about your situation.

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