What Is a Certificate of Pending Litigation (CPL)?

July 30th, 2026
In the News

A Certificate of Pending Litigation (CPL) is a legal notice registered on a property’s title in Canada to indicate that the property is involved in an ongoing lawsuit. Its purpose is to alert potential buyers, lenders, and other interested parties that ownership or rights to the property are being disputed. Once a CPL is registered, the property generally cannot be sold, mortgaged, or transferred until the legal dispute is resolved or the court orders the CPL removed.

If you’re involved in a real estate dispute, understanding how a Certificate of Pending Litigation works can help you avoid costly delays and legal complications. This guide explains when a CPL can be registered, how it affects property transactions, who can apply for one, and the steps for removing it.

Key takeaways

A CPL is a legal notice registered on a property’s title.
It shows the property is involved in an active lawsuit.
A CPL can prevent the sale, transfer, or refinancing of the property.
Provincial laws govern how CPLs are registered and removed.
Courts require a valid claim before granting a CPL.
Misusing a CPL may result in court-ordered costs or damages.
A real estate lawyer can help register, challenge, or remove a CPL.

How Are Certificates of Pending Litigation Governed Under the Land Title Act?

The precise process and terminology differ by jurisdiction, but most Canadian provinces rely on similar statutory frameworks to govern how a certificate of pending litigation is filed and enforced.

In British Columbia, Section 215 of the Land Title Act, RSBC 1996, c. 250 governs CPL registration. A party seeking relief must have commenced a Supreme Court action claiming an interest in land. The court registrar certifies the form before it is filed at the Land Title Office.
In Ontario, similar relief falls under the Courts of Justice Act, section 103, which requires granting leave from the court before a CPL can be registered. A “caution” under Ontario’s Land Titles Act is a related but distinct tool with a lower threshold and, in some cases, an automatic expiry.
Alberta’s Land Titles Act, RSA 2000, c. L-4, also permits CPL-type registrations but requires at least a strong prima facie case-a triable issue concerning land-before registration will be allowed by a willing purchaser of the argument.
Other statutes authorize similar registrations. The Builders Lien Act in BC and the Construction Act in Ontario allow charges that function like a CPL when an alternative claim arises from unpaid construction work. These charges often arise directly from construction law disputes over unpaid work, and can result in a similar certificate of pending litigation being registered.
Courts require that a CPL be filed only when there is a legitimate legal interest in the property. In some jurisdictions, a CPL must be obtained through a court order before filing. Parties should always check the specific statute and rules in their province. CPLs must be filed electronically by a professional through systems like BC’s LTSA portal-in-person and mail submissions for CPLs are not accepted.

When and why a certificate of pending litigation is used

Claimants seek CPLs for strategic protection: to preserve the property, prevent dissipation through secret transfers, and secure the ability to enforce a judgment. The intent is to ensure the land remains available if the plaintiff succeeds at trial.

Common disputes where a CPL is sought include contested property sales, joint venture breakdowns, fraudulent transfers to a shell corporation or relatives, family law property division, and real estate development disputes. A genuine issue concerning an interest in land must exist.
To obtain a CPL, the plaintiff typically must show a triable issue concerning an interest in land-not just a simple debt or money claim unrelated to ownership or title. The proceeding must assert a specific proprietary or equitable claim.
Courts weigh the balance of convenience. They determine how a CPL would affect the property owner’s ability to sell, refinance, or continue a project, versus the plaintiff’s need for security. CPL prevents property from being sold or mortgaged without consent, and properties with a CPL cannot be sold or mortgaged without consent.
A CPL motion may be refused or the CPL later cancelled if the claim does not truly affect land, if the lawsuit is frivolous, or if the claimant is using it as unfair leverage. Reasonable diligence in pursuing the underlying claim is expected.
In Crepulja et al. v. Masterson et al. (2026 ONSC 3559), the court granted a CPL on one property, ordered sale proceeds held in trust for a second, and refused the CPL on a third because a child’s stability outweighed the creditor’s interest-demonstrating that courts consider equities carefully before a CPL is granted.

How to register and remove a certificate of pending litigation

While CPL forms may be available online, the registration and removal process is complex, and mistakes can create costly delays. Working with an experienced litigation attorney in NYC can help ensure legal requirements are properly handled. The process typically involves filing a claim that establishes an interest in land, preparing the required CPL documents, obtaining court approval when required, and registering the certificate with the land title office.

Typical registration steps include: filing an originating pleading (claim or petition) that asserts an interest in land; preparing the CPL in the correct court form (such as Form 31 or Form 17 in BC); obtaining court approval or certification; and then filing the certificate at the land title office via the electronic filing system. A CPL application requires a detailed affidavit outlining the dispute. The court must approve a CPL before it can be registered.
In many provinces, each parcel of land requires a separate certificate of pending litigation. Claimants must ensure the correct legal description and parcel identifiers are used-errors commonly result in rejection or discharge.
A CPL can be removed by court order after a successful defence or dismissal of the claim, by settlement and consent discharge, or by an application to cancel on the basis that the claim does not truly affect land or that ongoing registration causes undue hardship. A CPL can be removed if the lawsuit does not support a claim affecting the property.
Once a discharge or cancellation order is obtained, registration of that order must be filed with the land titles office to clear the title. Until then, the CPL remains visible to buyers, lenders, and financial institutions reviewing title documents.
Timing matters. From initial court filing to registration or discharge can take weeks or months. A CPL remains effective until the lawsuit concludes or is removed by court order or consent. A focused CPL legal team can streamline filings, prepare documents efficiently, and respond quickly to urgent issues like imminent sales. Clients benefit from having a lawyer who understands the subject matter and the registry process.

Practical impacts on owners, buyers, and lenders

While a CPL protects one party’s claim, it can significantly disrupt the financial plans of everyone else connected to the property. The practical effect is immediate and far-reaching.

For the property owner, the implications of a CPL may include reduced marketability and financial pressure. Sellers face significant limitations due to a registered CPL: difficulties listing or selling, refusal by banks to refinance, potential breach of existing sale contracts when a CPL appears mid-transaction, and mounting legal costs. A CPL complicates property sales and refinancing efforts considerably.
For buyers, a title search will reveal the CPL as a charge. The registration of a CPL alerts potential buyers or lenders that their interests may be affected by the lawsuit’s outcome. A CPL deters potential buyers from purchasing the property, and proceeding with a transaction on a property with a CPL exposes buyers to legal risks. Most prudent purchasers and their lawyers will walk away or insist on removal before closing.
From a lender’s perspective, lenders typically refuse to mortgage properties with a CPL registered. They cannot register a new mortgage in first priority, which generally leads to loan refusals. No willing purchaser of mortgage-backed security will accept that risk.
In Wang et al. v. Jazzar Holdings Inc. et al. (2025 ONSC 1727), a property transferred for nominal consideration to the defendant’s parents-likely to defeat creditors-was frozen via CPL, delaying all planned transactions until the dispute could be resolved at trial.
Because of these impacts, courts treat a certificate of pending litigation as an extraordinary measure. The party seeking it may need to give an undertaking to pay damages if the CPL is later found to have been improperly obtained, ensuring the defendant is adequately protected. Wrongful use of a certificate of pending litigation can expose a claimant to remedies for breach of contract.

Conclusion

A Certificate of Pending Litigation is both a legal protection and a serious restriction on property transactions. Courts closely review CPL applications because they can freeze real estate dealings and impact property owners, buyers, and lenders. Understanding CPL requirements, registration, and removal procedures is essential when facing a land dispute. An experienced CPL legal team at a New York City law firm can evaluate your legal options, guide you through the process, and help protect your interests. If you need to register, challenge, or remove a CPL, seek timely legal advice to understand your rights and next steps.

Frequently Asked Questions

How long does a certificate of pending litigation last?

A CPL generally stays on title until the court orders its discharge, the claim is dismissed, or the parties settle and file a consent to removal. There is no automatic expiry in most provinces.

Can I sell my house if there is pending litigation and a CPL on title?

While a sale is not legally impossible, it is extremely difficult. Most buyers and lenders will not proceed while the CPL remains registered-a CPL serves as a legal freeze on real estate during litigation.

Can I get damages if a CPL was wrongly registered against my property?

Yes. Courts may award costs and, under statutes like the justice act provisions in Ontario, damages where the CPL was obtained without a proper land-related claim or used as an abuse of process.

Is a lawyer required to file or challenge a CPL?

The law does not always mandate representation, but court practice, electronic filing rules, and the financial stakes mean working with an experienced CPL legal team is strongly recommended.

Is a certificate of pending litigation the same as a lien?

No. A CPL gives notice of pending litigation. A statutory lien-such as a builders lien under the Builders Lien Act-may itself create a charge for unpaid amounts. They intersect in some cases but are distinct remedies.