Facts

• The respondents, Sri Sabari Peedham, Mithili Murugesu, Sivasubramaniam Ganesham, operated a Hindu temple in Unit #9, leased in 2017 with an option to purchase for $350,000.
• The landlord later transferred its interest, and 100 purchased Unit #9 for $750,000 via power of sale in 2023.
• The option to purchase was not registered on title, and no evidence showed whether 100 had notice of it.
• Respondents attempted to enforce their purchase option, despite a 2023 consent order allowing a fair market value offer.

Lower Court Decision

• The motion judge ruled in favor of the respondents, holding the option remained valid and ordering specific performance.

Court of Appeal Decision

• The appeal was allowed, and the case was remitted for trial.
• The Court found the judge failed to consider whether 100 was a bona fide purchaser without notice, as required under the Land Titles Act.
• The Court also noted that, under Ontario’s land registration system, unregistered interests generally do not bind subsequent purchasers absent fraud or actual notice.

Disposition

• Trial ordered to determine 100’s status as a bona fide purchaser.
• Respondents to continue paying $3,600 rent until trial.
• 100 awarded $10,000 in appeal costs.