What is the test for undue influence in a real estate transaction?
Ontario, Canada
The following excerpt is from Naismith v. Clarke, 2019 ONSC 5280 (CanLII):
The next enquiry involves examining the nature of the transaction. See also Geffen v. Goodman Estate, supra. It is only in commercial transactions where, to trigger the presumption of undue influence, it must be shown that the situation worked an unfairness in that one was unduly disadvantaged or the other person unduly benefitted. This is not necessary in non-commercial cases. The presumption arises where the presence of a dominant relationship is established.
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