A certificate of pending litigation (a CPL) is a form of charge
that can be registered on title to land where someone commences a
legal claim in which they assert an interest in that land. CPLs are
intended to protect the claimant's interest in that land. For
example, if a plaintiff asserts money they lent was used to
purchase or maintain land, they will claim a CPL. Similarly, a
purchaser will claim an interest in land where their vendor later
tries to get out of the sale.
As a practical matter, a CPL is an effective tool in tying up
land and putting pressure on its owner to resolve the dispute. It
is unlikely anyone else will deal with the land if there is a CPL
on title. For example, no one else is likely to buy the land and no
lender will take mortgage security because, if they do, their
interest in the land will be subject to the yet-to-be adjudicated
rights of the CPL holder.
