Real Estate & Mortgage Litigation Law Faq

Real estate litigation involves legal disputes related to property transactions, ownership, contracts, land use, leases, zoning, and property rights. Common issues in real estate litigation include breach of contract, title disputes, boundary issues, and construction disputes.

Real estate litigation lawyers handle cases such as:

• Breach of contract (e.g., failing to honor agreements in property transactions)
• Issues with new-home builders
• Property ownership disputes (e.g., title issues or co-ownership disagreements)
• Landlord-tenant disputes
• Real estate fraud, misrepresentation
• Issue with buyer/purchaser or seller/vendor
• Issue with real estate agent/broker, mortgage agent/broker, real estate lawyer for fraud, error, misrepresentation, mistake, negligence, professional malpractice related to a real estate transaction
• Construction disputes (e.g., contractor negligence, non-completion)
• Condominium disputes
• Zoning and land use issues

Mortgage litigation involves legal issues concerning mortgages, foreclosures, power of sale, defaults, and disputes related to lending agreements. This can include disputes over terms of a mortgage, foreclosure actions, and the rights of borrowers and lenders.

Mortgage litigation lawyers typically handle cases such as:

• Foreclosures (when a lender takes legal action to seize property due to mortgage default)
• Power of sale (a legal process that allows a lender to force the sale of a property in Ontario if the borrower defaults on their mortgage)
• Mortgage default (disputes over missed payments or breach of terms)
• Mortgage fraud (e.g., misrepresentation or fraud in securing a mortgage)
• Loan modification disputes
• Enforcement of mortgage terms
• Disputes between lenders and borrowers

You should consult a lawyer if:

• You are involved in a property dispute (ownership, title, or contract breach).
• You have difficulty fulfilling your obligation under a binding purchase and sale agreement, such as not being able to close a transaction on time.
• You have an issue with new home builders, and you want to understand your rights and obligations, especially if you fear that the builder may forfeit your initial deposit and may bring a court proceeding against you for their financial losses and damages.
• One of the parties violated, breached or failed to comply with a binding contract or agreement, such as not closing the transaction on due time, did not intend to fulfill their obligation under a binding contract or terminated the contract without cause.
• You want to establish your legal rights and claim your financial losses against the wrongdoer (for example, against an individual, corporation, borrower, mortgage agent/ broker, real estate agent/broker, lender) who caused you financial loss, pain and suffering.
• You are served with a Statement of Claim by an individual, lender or any entity and you need to prepare, serve and file your defence.
• You have issue with the terms and conditions of a mortgage agreement.
• You have a dispute with an institutional lender such as a bank, credit union, or financial institution.
• You have disputes with a private lender.
• You are facing foreclosure or power of sale and need help managing mortgage-related issues.
• You are served with a Notice of Sale or Statement of Claim by your financial institution or private lender.
• You believe you have been defrauded in a real estate transaction or mortgage agreement.
• You as a private lender want to enforce a mortgage by foreclosure or power of sale to recover your money from a borrower.
• You need advice or assistance with a legal claim involving property, zoning, or construction disputes.

You want to enforce, modify, or dispute terms in a real estate agreement or mortgage contract.

A lawyer can:

• Offer legal advice and guidance on your rights and obligations.
• Represent you in court or negotiations to resolve disputes.
• Help you understand legal documents such as contracts, deeds, and mortgages.
• Assist with enforcing or challenging a mortgage foreclosure.
• Resolve property disputes through alternative methods such as mediation or arbitration.

Prepare by:

• Gathering any relevant documentation (contracts, mortgage agreements, deeds, etc.).
• Writing down the key facts of your case (dates, events, and any parties involved).
• Identifying your goals (e.g., seeking damages, resolving a title dispute).
• Asking about the lawyer’s experience and approach to your specific issue.

The general process includes:

• Initial consultation – Discuss your case with a lawyer.
• Filing a claim – Your lawyer will prepare and file legal documents to initiate proceedings.
• Defence: typically, within 20 days after service (or 40 days if served outside Ontario).
• Discovery – Both parties exchange evidence.
• Negotiation or mediation – Many disputes are settled outside court.
• Examination for Discovery: oral questioning of the opposing party or witness under oath.
• Trial – If negotiations fail, the case will go to trial.
• Appeal – If a party is dissatisfied with the outcome, they may appeal the decision.

Costs may include:

• Hourly rates for the lawyer’s time.
• Fixed fees for specific services.
• Court filing fees and other administrative costs.
• Expert witness fees if applicable (e.g., appraisers, property valuers).
• Necessary disbursements, such as photocopy, courier, mail, process server’s fees

The duration varies, depending on the complexity of the case, court schedules, and whether the matter can be resolved through negotiation or mediation. Simple cases may take several months, while more complex cases or those going to trial may take over a year or longer.

Yes, many real estate and mortgage disputes are resolved through negotiation, mediation, or arbitration. Settling out of court is often quicker and less costly than going through a full trial.

Possible outcomes include:

• Settlement through negotiation or mediation.
• Court judgment for one party (e.g., damages, eviction, or foreclosure).
• Dismissal of the case if the evidence is insufficient.

To minimize disputes:

• Ensure contracts and agreements are clear and thorough.
• Perform thorough due diligence before purchasing property.
• Keep records of all transactions and communications.
• Work with experienced professionals (lawyers, real estate agents) to navigate complex property transactions.