The applicant purchaser brought a motion for an order granting leave to register a Certificate of Pending Litigation (CPL) against a property after failing to close an agreement of purchase and sale due to lack of financing.
The respondent seller opposed, arguing the purchaser had no interest in the land.
The court applied the test for a CPL, considering whether there was a triable claim to an interest in land and equitable factors such as property uniqueness, calculability of damages, and potential harm.
The court found the purchaser's claim for specific performance was not supported, the property was not proven unique, and damages (deposits plus interest) were ascertainable.
The motion for a CPL was dismissed.
However, the court ordered that the total deposits paid by the purchaser, along with pre-judgment interest, be held back from any future sale proceeds of the property by the seller's solicitor and invested, pending resolution of the underlying dispute regarding the deposits.