The applicant sought entitlement to $70,118.32 in surplus proceeds from a municipal tax sale of five lots it previously owned and transferred to the respondent.
The applicant claimed priority over the respondent owner based on an unregistered vendor take-back mortgage and equitable principles of vendor's lien and unjust enrichment.
The court found that the parties intended to secure the unpaid purchase price with a mortgage, which was not a demand mortgage but contingent on the sale of the lots, meaning the limitation period had not expired.
The court also found the applicant had a valid vendor's lien and that the respondent would be unjustly enriched if allowed to keep the proceeds.
The surplus funds were ordered paid to the applicant.
