Power of Sale

Power of Sale is typically used in the following situations:

Missed Mortgage Payments - The borrower has failed to make required payments and is in default.

Failure to Redeem - The borrower does not bring the mortgage current during the redemption period after receiving notice.

Lender Action - The lender wants to recover debt quickly without going through the courts.

Investment or Rental Properties - Power of Sale is frequently used to enforce mortgages on non-owner-occupied real estate.

Borrower Unresponsiveness - The borrower fails to communicate or negotiate repayment options with the lender.

Several legal steps must be followed in a Power of Sale process:

Notice of Sale - The lender must issue a Notice of Sale under the Mortgages Act and wait at least 35 days before selling.

Redemption Rights - Borrowers have the right to repay arrears and redeem the mortgage before the sale closes.

Duty of Fairness - Lenders are required to act in good faith and obtain fair market value for the property.

Distribution of Proceeds - Sale proceeds must first pay off the mortgage and legal costs, with any surplus returned to the borrower.

Compliance - Lenders must follow all legal procedures precisely to avoid liability.

Both borrowers and lenders may face challenges during the Power of Sale process:

Disputes Over Valuation - The borrower may dispute the sale price as being below market value.

Redemption Timing - Uncertainty over when the borrower can redeem may delay the sale process.

Inadequate Notice - Failure to follow notice procedures can invalidate the sale.

Tenant Rights - If tenants occupy the property, their rights must be respected under the Residential Tenancies Act.

Financial Consequences - The borrower may still owe a shortfall if the sale does not fully repay the mortgage.

At ME Law, we assist both lenders and borrowers in navigating the Power of Sale process. Our services include:

Lender Guidance - Helping lenders comply with all legal steps to avoid liability and recover funds efficiently.

Borrower Protection - Advising borrowers on how to respond to notices and protect their equity and rights.

Negotiation Support - Facilitating settlement discussions to avoid unnecessary sale or litigation.

Litigation Representation - Representing parties in court when disputes arise over sale terms or procedures.

Urgent Legal Advice - Acting quickly in time-sensitive cases where rights may be at risk.

Power of Sale cases move quickly. Whether you're a lender initiating enforcement or a borrower trying to save your property, contact ME Law today. We’ll help you take informed legal action and protect your interests through every stage of the process.