Question:
I am concerned about being paid a commission on my listing. The second mortgagee is taking power of sale proceedings. Will the Buyer get proper title?
I verified the mortgage but there were additional costs and expenses that I didn’t know about.
Answer:
Power of Sale proceedings once completed eliminate the registered subsequent encumbrances whether they be mortgages, liens or executions. The Buyer receives title which is not subject to those items.
Registered mortgages are likely to be only somewhat accurate as of the day they are registered. Easily a mortgage of $500,000 could escalate to $700,000 without any payments having been made. Nothing would change on title. A mortgage statement may show $700,000, but a payout statement would show an extra $50,000 in penalties, costs, fees, charges and expenses.
Naturally, you need an up to date mortgage statement from the mortgagee.
Brian Madigan LL.B. Broker