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Certificate of Pending Litigation in Ontario and BC: How to Protect Your Interest in Property

Date: June 10, 2026

When a dispute arises over an interest in land, the risk that the property will be sold, refinanced, or transferred before the litigation is resolved can fundamentally undermine the value of winning. A certificate of pending litigation (CPL) addresses that risk directly: registered on title, it puts the world on notice that the property is subject to a claim and prevents transactions that would defeat it.

Both Ontario and BC provide this remedy, and while the governing legislation differs, the underlying legal test and the strategic considerations are substantially the same. This article explains what a CPL is, when courts will grant one, the process in both provinces, the risks of wrongful registration, and how property owners can challenge a CPL registered against their land. For an overview of how Achkar Law handles property disputes, see our real estate disputes practice page.

What is a certificate of pending litigation?
A CPL is a court-issued notice registered on the title of a property that alerts the public that the land is subject to ongoing litigation. Once registered, the property cannot practically be sold, refinanced, or mortgaged without addressing the underlying dispute. It does not give the claimant a proprietary interest in the land: it preserves the status quo while the litigation is resolved.

In Ontario, CPLs are governed by section 103 of the Courts of Justice Act. In BC, they are governed by section 215 of the Land Title Act, RSBC 1996, c 250. Both provinces require a court order before a CPL can be registered, and both provide remedies against wrongful registration.

The legal test: Ontario and BC compared

Ontario: Courts of Justice Act, s. 103

  • Serious question to be tried regarding the claimant's interest in the land
  • Court exercises equitable discretion: uniqueness of the land, adequacy of damages, potential harm to each party
  • Delay can be fatal: unreasonable delay in bringing the motion weighs against granting
  • Claimant must provide undertaking as to damages
  • Wrongful registration: liability under s. 103(4) and for slander of title
  • Property owner can apply for discharge on security or showing of inadequate basis

BC: Land Title Act, s. 215

  • Serious question to be tried regarding the claimant's interest in the land
  • Court exercises equitable discretion on similar factors to Ontario
  • Prevents registration of charges and transfers without court authorization once filed
  • Claimant must provide undertaking as to damages
  • Property owner can apply to cancel under s. 215(4) of the Land Title Act
  • Wrongful registration exposes claimant to damages for cloud on title

When courts will grant a CPL: the two-part test

The threshold for obtaining a CPL in both Ontario and BC is deliberately set below what is required to win the underlying case. Courts are not conducting a mini-trial on the merits at the CPL stage: they are deciding whether the claim is sufficiently serious to justify freezing the property while the dispute is determined. Two elements must be satisfied.

Part one: serious question to be tried

The claimant must establish that there is a genuine issue regarding their interest in the property. The standard is low: the claim must not be frivolous or vexatious, and there must be a real legal question about the claimant's interest to be determined. The claimant does not need to prove their claim at this stage. A claim that discloses a plausible legal basis for an interest in the land, supported by some evidence, will typically satisfy this threshold.

The nature of the claimed interest matters. Claims based on a failed real estate transaction, a constructive trust, an express agreement to transfer land, a joint venture over real property, or a resulting trust from contributions to purchase price are among the categories courts regularly accept as raising a serious question. A claim that is purely monetary and does not assert any form of interest in the specific land will generally fail to establish the threshold for a CPL.

Part two: equitable discretion

Even where the threshold is met, the court retains discretion to refuse a CPL on equitable grounds. The factors courts consider include whether the land is unique, whether damages would be an adequate remedy if the claimant succeeds, the intent of the parties in the original transaction, the balance of harm between granting and refusing the order, and the claimant's conduct including any delay in bringing the motion.

Uniqueness is particularly important. Every parcel of land is unique in a legal sense, but courts look beyond that formality to assess whether the specific property has genuine characteristics that make monetary compensation an inadequate substitute. A commercial property with irreplaceable location characteristics, a property with particular heritage or development value, or a family home with personal significance are more likely to satisfy the uniqueness factor than a commodity investment property.

The adequacy of damages question cuts both ways in CPL applications. A claimant who can demonstrate that monetary compensation would not adequately protect their interest strengthens their case for a CPL. A property owner opposing the CPL who can show that the claimant's true interest is monetary and fully compensable by damages weakens the claimant's equitable case and strengthens the argument for discharge.

Ontario case law: what the courts have decided

Pacione v. Pacione, 2019 ONSC 813

The Ontario Superior Court granted a CPL despite the claimant also seeking monetary damages. The Court found that equity required preserving the claimant's potential interest in the property given the circumstances of the dispute, and that the fact that monetary relief was also sought did not eliminate the basis for the CPL. The decision confirms that a mixed damages and proprietary claim can support a CPL where the equitable factors otherwise favour registration.

Gentles v. Lynch, 2024 ONSC 2656

In a partnership dispute over pre-construction property, the Court granted a CPL where one party refused to provide an undertaking, emphasizing that fairness required preserving the claimant's position. The decision illustrates that a respondent's conduct, including refusing to provide reasonable assurances, can tip the equitable discretion in favour of granting the CPL even where the underlying merits are contested.

Sadiq v. Simcoe Ridge Homes Ltd., 2022 ONSC 2630

The Court refused to grant a CPL where the claimant had delayed unreasonably in bringing the motion and failed to demonstrate that the property was uniquely valuable. The decision is a clear statement that delay is not merely a procedural concern: it undermines the equitable foundation of the CPL application and can be determinative on its own. Claimants who wait after discovering the circumstances that ground the claim face a significantly harder application.

Concerned that a property you have an interest in may be sold or transferred before your dispute is resolved?

Delay in bringing a CPL motion is one of the most common reasons applications fail. The same urgency that applies to injunction applications applies here: act immediately once you identify the risk. Get legal advice today, not after the next scheduled court date.

Call: 1-800-771-7882 Protect Your Interest in the Property Now

How to obtain a CPL: the process in Ontario and BC

1

Commence the underlying litigation

A CPL can only be obtained in connection with an existing or contemporaneously commenced proceeding. In Ontario, the claim asserting the interest in land must be filed. In BC, a notice of civil claim must be filed in BC Supreme Court. The CPL application is brought as part of that proceeding, not as a standalone application.

2

Bring the CPL motion

In Ontario, the CPL motion is brought under section 103 of the Courts of Justice Act and supported by an affidavit setting out the basis for the claim, the interest asserted in the land, and the grounds for equitable discretion. In BC, the application is under section 215 of the Land Title Act. In urgent cases, the motion can be brought without notice to the respondent where giving notice would defeat the purpose of the order, for example where there is an imminent risk of sale.

3

Provide the undertaking as to damages

The claimant must provide a formal undertaking to compensate the property owner for any loss caused by the CPL if it is later found to have been wrongly granted. Courts may require evidence of the claimant's financial capacity to honour the undertaking where the property's value is significant. A claimant who cannot demonstrate capacity to honour the undertaking may face conditions on the order or refusal.

4

Register on title

Once the court grants the CPL, it is registered against the property at the land registry (Ontario) or the Land Title Office (BC). From that point, it appears in title searches and prevents the property owner from transferring title or granting mortgages without addressing the underlying dispute. Third-party buyers and lenders who discover the CPL in a title search will not proceed with the transaction while it is in place.

5

Advance the underlying litigation

A CPL is not a substitute for advancing the underlying claim. Courts expect claimants who have obtained a CPL to proceed with the litigation without unreasonable delay. A claimant who sits on a CPL without advancing the proceeding may face a discharge application on the grounds that the CPL is being used oppressively to cloud title rather than to genuinely protect a claim being actively pursued.

Challenging and discharging a CPL

A property owner against whose land a CPL has been registered has several avenues to challenge or remove it. These are not merely procedural options: where a CPL has been improperly obtained or is no longer justified, the owner has strong remedies available.

  • Motion to discharge for no serious question. If the underlying claim has no genuine legal basis for asserting an interest in land, the owner can bring a motion to discharge the CPL on the grounds that the threshold was never met. This requires demonstrating that the claim, even accepted at face value, does not support an interest in the specific property.
  • Motion to discharge for adequacy of damages. Where the claimant's true interest is monetary and fully compensable by damages, the owner can argue that the CPL is unnecessary and that a damages award at trial would fully protect the claimant. Courts will discharge CPLs registered over essentially monetary claims where the land itself is not the true subject of the dispute.
  • Provision of security in lieu of CPL. In both Ontario and BC, a property owner can obtain a discharge of a CPL by providing adequate security of equivalent value, such as a payment into court, a letter of credit, or a mortgage over another property. This frees up the disputed property for transactions while ensuring the claimant's interest is protected in a different form.
  • Discharge for delay or failure to advance. Where the claimant has obtained a CPL but failed to advance the underlying litigation with reasonable diligence, the court can discharge the CPL. The purpose of the remedy is to protect a claim being actively pursued, not to cloud title indefinitely.
  • Claim for damages for wrongful registration. Under section 103(4) of Ontario's Courts of Justice Act and the equivalent BC provisions, a property owner can seek damages against a claimant who wrongly obtained a CPL. Damages can include losses from a failed sale, increased financing costs, and any diminution in property value caused by the cloud on title.

Involved in a property dispute in Ontario or BC where a CPL may be needed, or one has been registered against your land?

Whether you need to protect your interest by obtaining a CPL urgently, or you are a property owner facing an improperly registered CPL that is blocking a transaction, the right approach depends on the specific facts and the urgency of the situation.

Get Advice on Your Property Dispute Or call us: 1-800-771-7882

Practical takeaways

A CPL freezes a property against sale, refinancing, or transfer by registering a notice on title that the land is subject to litigation. It does not give the claimant a proprietary interest in the land.
In Ontario, CPLs are governed by section 103 of the Courts of Justice Act. In BC, they are governed by section 215 of the Land Title Act. The legal test is substantially the same in both provinces: a serious question to be tried and equitable discretion favouring registration.
Delay is fatal. Courts apply the same urgency standard to CPL applications as to injunction applications: unreasonable delay between discovering the risk and bringing the motion undermines the equitable basis for the order and can result in refusal on that ground alone.
The adequacy of damages is a central equitable factor. A claimant whose true interest is monetary rather than proprietary faces a harder application. A property owner whose land is a commodity investment rather than a unique asset faces a harder opposition.
Property owners have strong discharge remedies: motion to discharge for no serious question, for adequacy of damages, for failure to advance the litigation, or by providing equivalent security. Wrongful registration attracts damages liability under s. 103(4) of the Courts of Justice Act and its BC equivalent.
A CPL does not replace the need to advance the underlying litigation. Courts expect claimants to proceed with reasonable diligence and will discharge CPLs used to cloud title without genuine pursuit of the claim.

Frequently asked questions

What is a certificate of pending litigation in Ontario?

A CPL is a court-issued notice registered on the title of a property under section 103 of the Courts of Justice Act that alerts the public the land is subject to litigation. Once registered, the property cannot practically be sold, refinanced, or mortgaged without addressing the underlying dispute. It preserves the status quo while the litigation is resolved but does not give the claimant a proprietary interest in the land.

What is the test for obtaining a CPL in Ontario?

Courts apply a two-part test: a serious question to be tried regarding the claimant's interest in the land, and equitable discretion considering uniqueness of the land, adequacy of damages, intent of the parties, and balance of harm. Delay in bringing the motion can be fatal. A claimant must also provide an undertaking as to damages.

Does BC have a certificate of pending litigation?

Yes. BC's CPL is governed by section 215 of the Land Title Act, RSBC 1996, c 250. When registered, it prevents the owner from transferring title or granting mortgages without court authorization. The legal test applied by BC courts is substantially similar to Ontario's: a serious question to be tried and equitable discretion favouring registration.

Can a CPL be discharged or removed?

Yes. A property owner can apply to discharge a CPL where the claim has no serious basis, damages would be adequate, the claimant has delayed unreasonably in advancing the litigation, or adequate security is provided in lieu of the CPL. Wrongful registration attracts damages liability under section 103(4) of the Courts of Justice Act and equivalent BC provisions.

What are the risks of registering a CPL without a valid basis?

Wrongful registration exposes the claimant to damages under section 103(4) of the Courts of Justice Act and to a claim for slander of title. Damages can include losses from a failed sale, increased financing costs, and diminution in property value. Courts take improper CPL registration seriously and the costs consequences of a successful discharge motion can be significant.

Involved in a property dispute in Ontario or BC where a CPL is in play? Tell us what's happening.

Whether you need to obtain a CPL urgently to protect your interest in land, you are a property owner seeking to discharge a CPL blocking a transaction, or you are assessing whether your interest in a disputed property qualifies for registration, Achkar Law advises on real estate disputes across Ontario and British Columbia. We will assess your position and advise on the steps that protect your interests before the situation changes.

Call us at 1-800-771-7882 or fill out the form below and we will be in touch.