Cape Breton woman awarded ‘lost acre’ after sellers quietly subdivided property before closing

A Cape Breton, N.S. woman who purchased a home only to discover the sellers had carved off a portion of the lot before closing has been awarded her missing acre of land.

On Nov. 1, 2024, Renee Baron agreed to pay Louis and Michelle Ferguson $330,000 for a house at 620 Shore Rd. in Sydney Mines. Both the land registration information and the cut sheet identified the parcel as 2.3 acres. 

Unbeknownst to Baron, the Fergusons had registered a subdivision plan — two days after the parcel was reviewed by Baron’s lawyer and two weeks before the deal was set to close. The parcel was reduced to approximately 1.4 acres, with the remainder absorbed into a neighbouring lot the Fergusons already owned, according to a decision dated Feb. 18 by Justice Scott Campbell of the Supreme Court of Nova Scotia in Sydney.

Baron learned of the subdivision a few weeks after closing, on Dec. 15, 2024. After informal attempts to resolve the matter failed, Baron filed a court application in August 2025 seeking either the full property as it existed when the agreement was signed or damages. 

Campbell noted in his decision that the purchase agreement contained no reference to any planned subdivision and required that any changes to its terms be made in writing and signed by all parties, a step the Fergusons never took.

The property that sold her

In her affidavit, Baron explained she had been looking for a property with space for a small business and an Airbnb rental within 25 minutes of Sydney.

The Shore Road property’s distinctive “L”-shaped lot, described in the listing as “an expansive outdoor paradise”, was a key attraction. The configuration would offer privacy for both herself and Airbnb guests, along with a marketable water view.

“I particularly liked the “L” shape of the lot because it meant that out building/garage could be set apart from the house,” Baron wrote in her affidavit. 

Justice Campbell noted that the “L”-shaped portion was precisely what the subdivision eliminated.

Baron’s agent, Steven Smith, and her lawyer both confirmed they had no indication the Fergusons planned to subdivide before closing. Smith said he had reviewed his emails and text messages from the transaction and found no warning from any party. 

“The first I heard of the subdivision was some time after the transaction had closed and Renee called me in distress,” Smith said in his affidavit.

Fergusons blame their agent

The Fergusons called themselves “innocent parties” and placed responsibility on their agent, Valarie Sampson, saying she “was responsible for the whole fiasco.” 

Michelle Ferguson’s affidavit stated the subdivision plan was completed May 10, 2024, and that Sampson was given the survey when the property was listed on May 30, 2024. The Fergusons said they repeatedly asked Sampson to ensure all prospective buyers were aware of the plan, and that when the offer was presented, they asked her to confirm Baron knew about it before they proceeded.

However, on cross-examination, Louis Ferguson confirmed that neither the purchase agreement nor the cut sheet, which he reviewed before it went live, mentioned the intended subdivision. The purchase price was never reduced after the subdivision was registered, and he acknowledged he never personally informed Baron or her agent prior to it closing.

Sampson testified that during a phone call made while she was with the Fergusons in their kitchen, Baron’s agent Smith confirmed he was aware of the subdivision and had a copy of the plan.

Justice Campbell found her retelling of the story unconvincing, as Sampson could not specify when the call occurred and was vague on other key details. Additionally, her story conflicted not only with the testimony of Baron, Smith and Baron’s lawyer, but with the Fergusons’ own evidence, as neither Louis nor Michelle made any mention of being present for the kitchen call.

The ruling

Justice Campbell ordered the Fergusons to legally convey what he termed “the Lost Acre” to Baron, at their own expense. He found that Baron, Smith and Baron’s lawyer had all been kept in the dark, while the Fergusons received the full purchase price without delivering what was agreed.

“Ms. Baron is an innocent party. She is blameless in this unfortunate turn of events,” he wrote, adding that sellers who make significant changes to a property after an agreement is signed must ensure the purchaser is expressly notified before closing. 

Campbell found the Fergusons had deprived Baron of “the opportunity to consider the change in circumstances and to make an informed decision on how to proceed.” They collected the full $330,000 on closing, he wrote, but “failed to satisfy their end of the bargain.”

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