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The History and Importance of Toronto Real Estate Lawsuits

Thursday Oct 01st, 2020


No, you’re not being callous about the real estate lawsuits. In fact, you’d be surprised how many buyers and sellers often file condo lawsuits in Toronto. Typically, the lawsuit is either on behalf of a seller or buyer. Similarly, it can also be against a corporation.

Primarily, the majority of the lawsuits in Toronto pertain to construction, zoning regulations, acquisition of land, registration, turnover, design, and development. The fact remains, there’s a lot that can legally go wrong.

Here are some of the legal guidelines, examples, and statures concerning the history and importance of real estate lawsuits in the great city of Toronto:

Turning Over Process

From developers to owners, the procedure of “turning over” the formation of a new condo is something where each party has to abide by. Generally, it comprises of the board of directors who ensure the effective management of the land or building.

For instance, the condo residents might often address issues that legal owners might not be comfortable with. In this scenario, the developer also bears no responsibility whatsoever. And this is where the litigation comes into the picture.

The Litigation Process

Over the years, there have been hundreds and thousands of condominium corporation-based litigations. For the most part, residents often have lofty expectations when it comes to new condos. People often confuse how things “are” and how things “should be”.

Apart from the physical structure, the owners often raise questions about the exterior aspects of the condos. It could just be a dispute over the parking space or terrace, but a lawsuit almost always ensues.

Does Lawsuit Proceedings Affect the Property?

Contrary to misguided perception, a lawsuit doesn’t necessarily tarnish the image of a condo. In fact, public discourse and legal proceedings are mostly different. Contrarily, the disclosure of public information of a printing factory, for example, led to a multi-million dollar lawsuit a few years ago in Toronto.

Often, the lawsuit comes into effect because a buyer has little or no knowledge of the real estate market. And without competent guidance of a real estate agent or mortgage broker, the condo becomes the subject of litigation.

Who Pays the Ultimate Price?

Well, lawsuits impact buyers and as well as sellers (more or less) equally. However, a lawsuit sometimes doesn’t work in favor of a buyer, who may not be kind to the seller or doesn’t want to buy the property at all.

As a buyer, you should also be aware that most of the real estate condo lawsuits are settled outside court. According to the Status Certificate of condominium act, anyone can place the order for a property without being a real estate agent or a lawyer.

Take a look at the result of legal proceedings from a corporate claim suit:

Now, the $25,000 might not seem much at first. But if you put it into the geographical context of downtown Toronto, it’s fairly reasonable. Apart from the operating costs, the insurance will also cover its share. Nonetheless, not every lawsuit claim is small. There is, for example, a case where the lawsuit questions the morality of using the land for marijuana purposes.

What Else?

Lawsuits that involve multiple condominiums, for instance, can go on for years. It may not sound fair, but it’s the buyer or seller that does the suing. Whether you’re a buyer or seller, you will have the chance to argue the downside of the legal proceedings (i.e., cost or legal fees). Ironically, there’s always a chance of another counter-suit.

The above example showcases dispute over free electricity. It may not sound much, but it can create a lot of noise in the real estate circle. But after the court dismissal and settlement, another third-party filed the claim.

Interestingly, lawsuit cases don’t mean buyers should change their minds about condos. Instead, lookout from bully offers that might lead to lawsuits and have an experienced real estate agent by your side. And as a seller, if you get a good bid from the buyer despite a few issues, you should assume the deal is still final.


In the majority of the real estate lawsuits in Toronto, insurance companies insure the loss. What’s more is that Declarant’s insurance covers most of the cost. So long as you’re actively searching to purchase a condo, you wouldn’t run into a class-action lawsuit. In hindsight, the fear of a lawsuit shouldn’t change your desire to buy a condo in Toronto.