Let`s face it, the Ontario Court of Appeal has been making a mess of real estate cases. Consider, for example, how quickly it had to reverse itself on the position it took on mortgage fraud in Household Realty Corp. v. Li.
In that case, the court decided that a fraudulent transfer or mortgage was valid once registered, and that a forged mortgage was valid because the lenders did not participate in the fraud. Real estate experts were scathing in their condemnation of the court`s reasoning, many of them blaming it on a lack of real estate law expertise in the court. The public outcry over people losing their homes and being on the hook for fraudulent mortgages didn`t help much either.
http://network.nationalpost.com/np/blogs/l...log-no-200.aspx
In that case, the court decided that a fraudulent transfer or mortgage was valid once registered, and that a forged mortgage was valid because the lenders did not participate in the fraud. Real estate experts were scathing in their condemnation of the court`s reasoning, many of them blaming it on a lack of real estate law expertise in the court. The public outcry over people losing their homes and being on the hook for fraudulent mortgages didn`t help much either.
http://network.nationalpost.com/np/blogs/l...log-no-200.aspx