What Happens If Someone Devalues a Property By Spreading False Information?

Slander of Property, Whether Such Property Is Realty or An Object, Is a Civil Law Tort That Occurs When False Information Is Spread About the Property or An Improper Lien or Encumbrance Is Registered Against the Property So to Maliciously Stigmatize and Devalue the Property.
Similar Questions About Slander of Title of Property Include:

  • If Someone Devalues a Property By Spreading False Information Can They Be Sued?
  • Can Property Be Slandered?
  • What Happens If Someone Devalues a House By Spreading False Information?
  • What Does Slander of Property Mean?
  • What Is the Tort of Slander of Title?

A Helpful Guide on How to Determine and Understand What Conduct Constitutes As Slander of Title of Property Including Stigma Injury Negatively Affecting the Value of Property

Lawsuit Document Involving Slander of Title of Property Issues Slander of person, known as defamation, is more commonly understood; however, slander of property, also known as slander of title, can also occur.  Generally, slander of title of property occurs when statements or documents, including documents usual to a legal process, such as liens or encumberances, are improperly and maliciously used to cast a stigma upon property thereby making the property less valuable or less saleable.  Examples of slander of property can involve the spread of rumours that a house is haunted; Manitoba Free Press Co. v. Nagy, 39 S.C.R. 340 or the registration of a security interest on an automobile; Osman Auction Inc. v. Murray, 1994 CanLII 8911.

The elements of the common law cause of action of slander of title of property are found in Almas, et al, v. Spenceley, 1972 CanLII 609 where it was said by the Court of Appeal for Ontario:

In an action for slander of title the following elements must be proved:

(1) that the defendant published words in disparagement of the plaintiffs' property;

(2) that such words were false;

(3) that such words were published with actual malice;

(4) that the plaintiffs sustained special damages as a result.

A statutory right of action for slander of title of property can also occur, Land Titles Act, R.S.O. 1990, c.  L.5, s. 132; Construction Lien Act, R.S.O. 1990, c. C.30, s.35, among others.  Unlike the common law cause of action, liability under the statutory right of action may arise without malice or recklessness.

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