What Is Real Estate Litigation?

Real estate litigation is the legal process of resolving disputes involving land, buildings, and property rights through the court system. When property owners, buyers, sellers, landlords, tenants, or business partners can’t resolve disagreements about real estate, litigation becomes necessary to protect rights and enforce obligations.

Disagreements arise when real estate transactions fall apart. Buyers or sellers may breach the Agreement of Purchase and Sale, leading to litigation.

Common issues:

• Buyer fails to close the transaction and complete the purchase
• Seller refuses to transfer ownership or sells to someone else
• Disputes over property condition, defects, or misrepresentations
• Financing contingencies not met
• Title problems discovered before closing

Remedies sought: Return of deposits, specific performance (forcing completion of the sale), or damages for lost opportunities.

Commercial leases create complex legal relationships governed by Ontario’s Commercial Tenancies Act. Disputes carry significant financial consequences.

Common issues:

• Rent arrears and non-payment
• Lease interpretation disagreements
• Eviction and lockout proceedings
• Tenant improvements and alterations
• Lease renewal rights and disputes
• Breaches of lease terms
• Distress and seizure of tenant property

Stakes: Tenants risk losing their business premises. Landlords risk lost rental income and property damage.

When co-owners disagree about jointly-owned property, one party can force a sale through partition proceedings.

Common scenarios:

• Former spouses or partners can’t agree on what to do with shared property
• Siblings inherit property together but have different plans
• Business partners own commercial property and reach an impasse
• Investment partners want different outcomes

The process: Court orders the property sold and proceeds divided according to ownership interests, unless one co-owner buys out the other.

Neighbours fight over property lines, fences, structures, or use of land.

Common issues:

• Fences or buildings built over property lines
• Disputed survey results
• Adverse possession claims (squatter’s rights)
• Encroaching trees, roots, or structures
• Prescriptive easements (rights acquired through long use)

Resolution: Surveys, legal descriptions, title searches, and sometimes court orders determining rightful boundaries and requiring removal of encroachments.

A CPL is registered on property title during litigation to prevent the owner from selling or mortgaging the property until the dispute resolves.

When used:

• Purchase and sale disputes
• Claims for beneficial ownership
• Partnership or matrimonial property disputes
• Estate disputes involving real property

Effect: Freezes the property, protecting the claimant’s interest but preventing transactions.

Disputes over rights to use someone else’s property for specific purposes.

Common issues:

• Access to landlocked properties
• Utility easements (hydro, water, gas lines)
• Shared driveways
• Rights of way for passage
• Disputes over easement scope or termination

Contractors, subcontractors, or suppliers who haven’t been paid can register construction liens against the property.

The process: Liens must be registered within 45 days of work completion. If unpaid, the lien holder can force sale of the property to recover payment.

Disputes involve: Validity of liens, amounts owed, priority among multiple lien holders, and discharge of liens.

Disagreements about who owns property or what interests burden the title.

Common issues:

• Fraudulent transfers or forgeries
• Competing claims of ownership
• Unregistered interests or claims
• Errors in title documents
• Claims based on wills, trusts, or family arrangements

Legal action when someone’s use of their property unreasonably interferes with your enjoyment of your property.

Examples:

• Excessive noise from commercial or industrial operations
• Odours, pollution, or contaminants
• Water runoff or drainage issues
• Light pollution or vibration

Unauthorized entry onto or use of your property.

Common scenarios:

• Structures built partly on your property
• Use of your property without permission
• Continuing trespass despite warnings

Step 1: Legal consultation

Consult a real estate litigation lawyer to assess your case, understand your rights, and evaluate options.

Step 2: Demand letter

Your lawyer sends a formal letter outlining the problem, your position, and demanding resolution. Many disputes settle here.

Step 3: Negotiate

Attempt to resolve the dispute through negotiation, potentially with lawyers mediating.

Step 4: File a lawsuit

If negotiation fails, file a Statement of Claim in Superior Court outlining your case.

Step 5: Consider interim relief

In urgent cases, seek interim injunctions or register a Certificate of Pending Litigation to protect your interests during litigation.

Step 6: Discovery

Exchange documents and conduct examinations for discovery where parties are questioned under oath.

Step 7: Pre-trial conferences

Meet with a judge to discuss settlement possibilities. Many real estate cases settle at this stage.

Step 8: Trial

If settlement fails, proceed to trial where a judge hears evidence and makes binding decisions.

Step 9: Judgment and enforcement

The court issues judgment, and the winner enforces it through various legal mechanisms if the loser doesn’t comply voluntarily.

If you’re involved in a real estate dispute, professional legal guidance protects your property rights and financial interests.

Contact Pinto Shekib LLP at info@pintoshekib.ca or 416.901.9984 to schedule a confidential consultation about your real estate litigation matter.