Real Estate Disputes in Ontario: Advice and Negotiation

Most real estate transactions close without incident. When one does not, the amounts involved are large and the time to act is short. Real estate litigation in Ontario covers failed closings, deposit disputes, hidden defects, title and boundary problems, disputes between co-owners and mortgage enforcement. Law Wise advises buyers, sellers, owners, lenders, landlords and tenants on these disputes and negotiates on their behalf, across the entire GTA and Ontario, from its office in Mississauga. The firm’s work in this area is advice and negotiation. It does not conduct the court case itself.

Disputes we advise on

• a buyer or seller who refuses or fails to close
• who is entitled to the deposit after a deal collapses
• defects discovered after closing and claims of misrepresentation
• title problems, easements, rights of way and boundary disagreements
• co-owners who cannot agree on whether to sell
• mortgage default, power of sale and claims on the mortgage debt
• commercial landlord and tenant disputes

Buying, selling and leasing property are governed by the contract the parties signed and by Ontario’s property and contract law. If one side does not honour the agreement, the other can ask a court to enforce it or to award damages. Many disputes are resolved by negotiation between lawyers before that point. Those that are not are decided by the courts, where real estate litigators argue them. Where your dispute has to go to court, we tell you early, so that you can retain a litigation lawyer in time.

When a closing fails

An agreement of purchase and sale normally makes the closing date strict. If the buyer does not close, the seller can normally keep the deposit and may also claim further loss, for example where the property later sells for less, together with the costs of carrying it in the meantime. The seller is expected to take reasonable steps to limit that loss, which usually means reselling at a fair price within a reasonable time.

If the seller refuses to close, the buyer may claim the loss actually suffered and, in some cases, may ask the court to order the seller to complete the sale. Either way, what each side did on and before the closing date matters a great deal afterwards. If a closing is in doubt, speak with a lawyer before the date, not after it.

Deposit disputes

The deposit is usually held in trust by the listing brokerage. When a deal fails, the brokerage will generally not release it without a direction signed by both parties or a court order. Whether a buyer gets the deposit back turns on the agreement: whether a condition, such as financing or inspection, was still open and was properly relied on, or whether the agreement had become firm.

Defects and misrepresentation after closing

Ontario law generally expects a buyer to inspect before buying. That is not the whole story. A seller must disclose hidden defects the seller knows about that make a property dangerous or unfit to live in, must not actively conceal a defect, and must not make false statements about the property. A buyer who discovers such a problem after closing may have a claim against the seller, and sometimes against others involved in the sale. These cases depend on evidence of what the seller knew and what was said, so keep the listing, the agreement, any disclosure forms, inspection reports and messages.

Certificate of pending litigation

Where a lawsuit puts an interest in land in question, the court can issue a certificate of pending litigation, which is then registered on title. It warns anyone dealing with the property that the claim exists, and in practice it makes the property hard to sell or mortgage until the case is resolved. It is a serious step in both directions. The court can discharge a certificate, for example where the claimant has no reasonable claim to an interest in the land, has claimed money as an alternative to the land, or does not move the case forward. A party who registers one without a reasonable claim is liable for the damage it causes.

Disputes between co-owners

When people who own property together cannot agree, Ontario’s Partition Act allows a co-owner to ask the court to order the land divided or, far more often, sold and the proceeds shared. Joint tenants and tenants in common can both be compelled to accept a partition or sale. For spouses, the Family Law Act adds its own rules about a matrimonial home, so separating spouses should get family law advice first.

Mortgage default and power of sale

Most Ontario mortgages let the lender sell the property if the borrower defaults. Under the Mortgages Act, notice of sale cannot be given until the default has continued for at least 15 days, and the sale cannot take place until at least 35 days after the notice. Before a sale, a borrower can generally bring the mortgage back into good standing by paying the arrears and the lender’s expenses. We advise borrowers who have received a notice, and lenders, on their rights and options, and we negotiate with the other side.

Commercial landlord and tenant disputes

Commercial tenancies are governed by the lease and the Commercial Tenancies Act. Disputes over arrears, lockouts, repairs, assignment and the end of the lease can move quickly, and a tenant facing termination can ask the court for relief. See commercial lease agreements.

Which court, and how long

Claims for up to $50,000 can be brought in the Small Claims Court. Larger claims, and claims for an order about the land itself, go to the Superior Court of Justice. Ontario’s Rules of Civil Procedure were amended during 2026 and more changes are expected, so the steps and timelines in a case have to be confirmed against the rules in force at the time. No lawyer can promise a result or a timetable. What we can do is tell you where you stand, what the options cost and what each is likely to involve.

How Law Wise helps with a real estate dispute

• reviews the agreement, the correspondence and the title record and gives you an assessment of your position
• acts quickly where a closing date, a notice period or a limitation period is running
• negotiates a resolution where one is available, including extensions and mutual releases
• tells you when a dispute needs a court proceeding, and what that involves, so that you can retain a litigation lawyer in time
• works alongside the real estate side of the practice, so the transaction and the dispute are understood together

Your file is handled by a Law Wise lawyer licensed by the Law Society of Ontario. Service is available in English, Urdu, Punjabi and Hindi, and, if you retain the firm, fees are explained and confirmed in writing before work starts.

Common questions about real estate litigation

This page is general legal information for Ontario, current as of 11 October 2026. It is not legal advice and does not create a lawyer-client relationship. For advice about your situation, please speak with a lawyer.