This week’s case review examines 2642948 Ontario Inc. v. Jonny’s Antiques Ltd., 2025 ONSC 2059, a decision addressing power of sale, certificates of pending litigation (CPLs), and peaceable possession under a commercial mortgage.
The dispute arose after a vendor take-back mortgage matured and the mortgagor continued making interest-only payments for several years without paying down the principal. When the mortgagee ultimately moved to enforce its rights, the mortgagor sought and obtained an ex parte CPL and claimed an oral agreement allowed indefinite interest-only payments.
The court set aside the CPL, finding material non-disclosure on the ex parte motion. It reaffirmed that mortgage amendments concerning interests in land must be in writing, rejected the alleged oral modification, and confirmed the mortgagee’s right to exercise its self-help power of sale remedy.
The decision also provides a clear review of what constitutes “peaceable possession” in a commercial context and distinguishes between residential and non-residential properties when assessing whether a writ of possession is required.
For real estate lawyers advising on vendor take-back mortgages, enforcement strategy, CPL risk, and power of sale remedies, this case offers practical and procedural guidance.
