Default Judgment
Learn what a default judgment means in Canadian real estate law, how it’s issued, and what buyers, tenants, or owners should do to avoid legal consequences.
May 22, 2025
What is a Default Judgment?
A default judgment is a court ruling issued in favor of one party when the opposing party fails to respond or appear in court.
Why Default Judgments Matter in Real Estate
In Canadian real estate, default judgments may arise from disputes related to purchase agreements, rental contracts, or mortgage enforcement actions. If a buyer, seller, tenant, or borrower fails to respond to legal action, the court can grant relief to the claimant without a hearing.
This can occur in cases such as:
- Buyers backing out of firm offers
- Tenants failing to respond to eviction filings
- Borrowers ignoring foreclosure proceedings
Default judgments can lead to serious consequences such as financial penalties, eviction orders, or forced sales. They are legally binding and can be enforced through property liens or garnishment.
Understanding default judgments is essential for avoiding legal risks in real estate disputes and responding promptly to court notices.
Example of a Default Judgment in Action
A buyer fails to respond to a seller’s lawsuit over a breached purchase agreement. The court grants a default judgment ordering the buyer to pay damages.
Key Takeaways
- Issued when one party fails to appear or respond.
- Can result in monetary or legal penalties.
- Applies in real estate disputes and enforcement.
- Enforceable through liens or collection.
- Avoidable by timely legal response.
Related Terms
- Default
- Foreclosure
- Legal Liability
- Purchase Agreement
- Eviction
An overview of Hedge Road Landing. (Alliance Homes)
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
Highlights from the Delta Golf & Country Club listing brochure. (Colliers)