Cottages and recreational properties are often treasured family assets but can also become the source of legal disputes. At MLK LAW, we specialize in providing efficient, result-oriented solutions to address the unique challenges arising from cottage property disputes.
Types of Cottage Property Disputes
Disputes related to cottages can arise during a purchase, division of assets, or fulfillment of a will. Here’s an overview of common situations and how we can assist:
1. Agreement of Purchase and Sale Issues
When an agreement of purchase and sale cannot be completed, it is often due to financing challenges. Common scenarios include:
- Buyers unable to secure mortgage financing or missing performance deadlines.
- Dependence on funds from another sale that fails to close.
In these cases, if the buyer is not ready or able to close but the seller is, the buyer’s deposit is typically forfeited. Sellers may also pursue legal claims for losses such as reduced sale prices, carrying costs, or legal fees.
Key areas of concern include:
- Failure to close due to financing issues.
- Refusal to sell or buy.
- Disputes over pre-construction sales.
2. Splitting Cottage Assets After Separation
Like other property disputes, dividing cottage assets after a separation follows Ontario’s “right to equalization.” This rule states that the value of property acquired during the marriage must be shared equally upon dissolution or death.
While the entitlement is to the value of the property, not the property itself, the person named on the title often retains ownership. Navigating these disputes requires expert legal guidance to protect your rights and ensure fair outcomes.
3. Fulfilling a Last Will and Testament
Inheriting a Cottage with Siblings
When siblings inherit a cottage, they face several options, often requiring mutual agreement:
- Buyout: One sibling buys out the other’s share, typically requiring financing for half the property’s value.
- Sale or Rental: Selling the property or renting it out as co-owners can provide equitable solutions if both parties agree.
- Partition Suit: If no agreement is reached, legal action can force the sale, terminating co-ownership.
Cottage disputes can quickly become complex and emotionally charged. Consulting a skilled lawyer is the best way to navigate these issues and protect your interests.