Case considered: 1279017 Alberta Ltd. v. 1257613 Alberta Ltd., 2009 ABCA 364
PDF version: Is every vendor of land an “unpaid vendor”?
In 1279017 Alberta Ltd. v. 1257613 Alberta Ltd., the Alberta Court of Appeal split 2:1 on the question of whether 1257613 Alberta Ltd. had an interest in land that would support the caveat and certificate of lis pendens that it had filed against an 80 acre parcel of land registered in the name of 1279017 Alberta Ltd. The vendor’s interest in land was said to be an unpaid vendor’s lien that arose as a result of a real estate purchase contract between 1257613 and 1279017. Had the dissenting opinion of Mr. Justice J.D. Bruce McDonald prevailed in this case, virtually every vendor of land, paid in full or not, would be an unpaid vendor and entitled to caveat another’s land. Fortunately, the majority position of Madam Justice Constance Hunt and Mr. Justice Keith Ritter won through. The unpaid vendor’s lien only continued until payment by the purchaser.