In Canada, a CLP refers to a “Certificate of Pending Litigation.”
A Certificate of Pending Litigation (CLP) is a legal document that is registered against the title of a property to indicate that there is a pending lawsuit involving the property. It serves as a notice to potential purchasers or lenders that the property is subject to a legal dispute. This document is often used when there is a disagreement over ownership, boundaries, or other property-related matters.
When is a CLP used?
A CLP is typically used in situations where there is a dispute over real estate, such as:
- Ownership disputes: When there is a disagreement over who owns the property.
- Contract disputes: When there is a dispute over a contract involving the property, such as a purchase agreement.
- Lien disputes: When there is a dispute involving liens on the property.
What does a CLP do?
A CLP essentially “freezes” the title of the property, making it difficult to sell or mortgage the property until the litigation is resolved. It does not prevent the owner from using the property, but it does affect their ability to transfer ownership or use the property as collateral for a loan.
How is a CLP removed?
To remove a CLP, the underlying litigation must be resolved, or a court order must be obtained to discharge the certificate. This can happen if the litigation is settled, dismissed, or otherwise concluded. The property owner or another interested party can apply to the court to have the CLP removed if they believe it was improperly registered or if the litigation has been resolved.
