Encyclopedia
Certificate of pending litigation (CPL)
A notice registered on title that a court case claims an interest in the land. It can make the property hard to sell or finance until it's resolved.
For example: A title search during due diligence shows a CPL, and the buyer's lawyer asks the seller to deal with it before completion. (Illustration only, not a real deal.)
Official source: Land Title Act (BC Laws)
Example only, not a real client. Say a title search shows a certificate of pending litigation on a property you want to buy. That means someone has started a court claim affecting the land. You pause and get legal advice before going further.
What I’d tell a friend
Do not ignore a pending litigation certificate on title. Get a BC lawyer’s advice before proceeding.
Why it matters to you
A CPL on title can stop a sale or refinance until it's resolved. Buyers should find out why it's there before removing subjects.
How to use it in your deal
Buyers should check title for CPLs early and treat one as a serious red flag; your lawyer can explain the claim and options, which usually include waiting, requiring removal before closing, or walking away. Sellers facing a CPL may apply to court to cancel it, sometimes by posting security, but that takes time and money. Lenders generally won't advance funds with a CPL on title.
Owners in disputes should know that a CPL can be registered quickly, and also that registering one without a proper claim to the land can bring costs. Tenants should know a CPL on the landlord's property can complicate a sale but doesn't usually end your lease. Search title right before removing subjects and again before completion, since a CPL can be filed at any time.
Buyers and lenders usually won't close while one sits on title, so it can stop a sale or refinance until it's discharged.
Mistakes I see
Missing a CPL in a title search. Assuming it'll be removed before closing. Registering one for a money claim that isn't about land.
In BC and Vancouver
The Land Title Act and BC's Supreme Court Civil Rules govern CPLs. Court decisions on CanLII show when they're cancelled.
Official sources: Land Title Act (BC Laws) · Land Title and Survey Authority of BC · CanLII (court decisions)
What it is
A certificate of pending litigation is a notice registered on title that a court case claims an interest in the land.
It warns buyers and lenders and can make a property hard to sell or finance.
What to do
Ask your lawyer to review the claim and the options.
A sale may need the claim to be resolved or the certificate removed, which can take time.
Questions to ask before you sign
- Is there a CPL on title?
- What is the claim about?
- Can it be cancelled?
- Will my lender proceed?
- How long could it take?
Keep reading
Related terms: Title search, Due diligence
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.