The plaintiff entered into an unwritten real estate arrangement orchestrated by a third-party broker, whereby she obtained mortgage financing to purchase a property from power of sale proceedings, allowing the former owner to live there and potentially repurchase it after one year.
When the year expired, the former owner failed to secure financing to repurchase the property.
The court held that the plaintiff retains full title to the property and is entitled to vacant possession.
The court also found that the broker breached his duty of care by failing to document the arrangement or advise the parties to seek legal counsel, making him liable for the plaintiff's costs and for $20,000 to the former owner.
Furthermore, the court ordered the removal of a third mortgage fraudulently registered against the property by another defendant.