The recent decision of the Ontario Superior Court in 1261053 Ontario Inc. and Pesing v. 1510846 Ontario Inc., Plain, Blevins and Thunder Valley Wilderness Inc. is a well-reasoned decision of the Court, demonstrating that the Courts can and do delve into property matters with intelligence and sensitivity towards the rights of the parties involved. But it also shows how reasonable people can end up in a court because of cottage property issues.
In this case, 1261053 Ontario Inc. and Mr. Pesing had a mortgage against lakeshore property in Deer Lake, near Parry Sound. The owner defaulted on the payment of the mortgage some time after the owner acquiring the 66 foot waterfront shore road allowance that used to belong to the Province of Ontario. The owner never told the lenders that he was buying the allowance. The Court permitted the lenders in possession to get ownership of the shore road allowance, which relieved the lender and any later owners from obstacles which may have arisen if the previous owners still owned the road shore allowance. For example, who would want to install a dock 66 feet from the water's edge?
Uncommon issues like access, maintenance of private roads and road shore allowances abound in cottage land. This is why cottage purchases are frequently more complicated than land purchases in urban areas. And I am not even discussing other big issues such as estate planning and time sharing of cottage property.
As Spring approaches, and it will, buyer's appetites for cottage property grows. Nothing I write will lessen people's desire for cottage property but if you are making that kind of commitment, make sure your lawyer has experience in this sub-specialty of real estate law and give your lawyer ample time to review the draft Agreement of Purchase and Sale, the title to the property and to anticipate the special issues that can and frequently do arise in Cottage purchases. That is a decision you will not regret.