A recent Ontario Superior Court decision offers important reminders about the risks of informal property arrangements and the misuse of powers of attorney in real estate transactions. The recent decision in Harris v. Melo, 2025 ONSC 4152, serves as a cautionary tale for real estate practitioners about the dangers that can arise when property ownership arrangements are based on informal or vague understandings without any documentation. The case, decided by Justice M.D. Faieta on July 23, 2025, involved a property dispute that festered for over three decades before reaching the courts. The Facts: A Property Deal Gone Sideways In December…
Author: Nick Tenev
Nick Tenev
Nick Tenev is a litigation lawyer and director at Cowan Litigation. With a background in nuclear engineering and experience at the Royal Bank of Canada’s legal department and a leading Bay Street firm, Nick brings a practical and strategic approach to complex legal disputes.
For transactional real estate lawyers, understanding the litigation landscape can provide valuable insights into drafting stronger agreements and advising clients on potential risks. A recent Ontario Court of Appeal decision, Hermina Developments Inc. v. Epireon Capital Limited, 2025 ONCA 559, offers important lessons about mortgage enforcement, power of sale proceedings, and the challenges facing both borrowers and lenders in distressed real estate situations. The Facts: A 16-Year Enforcement Saga The case involves a development property in Woodstock, Ontario—a 26.7-acre parcel purchased by Hermina Developments in 1999. In 2008, Hermina secured financing through two mortgages, including a second mortgage to the…