What happens when a lender never signs a mortgage commitment, but the transaction still closes, the mortgage is registered, and the borrower performs for a year? In Patel v. Unnumbered Company (2025 ONSC 5192), the Ontario Superior Court confronted that exact issue and clarified how courts assess enforceability and contractual obligations when documentation isn’t fully executed yet the parties act as though it is.
Nick breaks down the court’s reasoning, what this decision means for mortgage enforceability and risk on imperfect documentation, and why post-closing conduct matters in real estate disputes.
