What is the test for the presumption of undue influence in real estate transactions?

Where the party challenging a transaction relies on the presumption of undue influence, the first stage of the inquiry involves a determination as to whether the parties to the transaction were in a relationship of dependency. It must be shown that there is the potential for domination inherent in the relationship: Geffen v. Goodman Estate, 1991 CanLII 69 (SCC), [1991] 2 S.C.R. 353 [Geffen] at 378. The test embraces those relationships that equity has already recognized as giving rise to the presumption, such as solicitor and client or guardian and ward, as well as “other relationships of dependency that defy easy categorization”: Geffen at 378.