Certificates of Pending Litigation

When a person files a lawsuit that claims an interest in a piece of real property, they are entitled to file a Certificate of Pending Litigation (CPL) with the Land Title Office against title to that property. A plaintiff may also file a CPL against title to a property if permitted to do so under another enactment. One such example would be a person who files a wills variation claim. These rules are provided for under section 215 of the Land Title Act.

The primary use and effect of the CPL is to prevent the property being sold pending the outcome of the lawsuit.

A person whose property is subject to a CPL may apply under section 252 of the Land Title Act to have it canceled if no step has been taken in the lawsuit for a year.

CPLs can be problematic when the property is about to be or needs to be sold. In those cases, the parties to the lawsuit are often able to agree that the CPL will be discharged in exchange for the proceeds of sale being held in trust pending resolution of the lawsuit or order of the court.