In the Logozzo v. TD case in 1999, the Ontario Court of Appeal decided that an unconditional Sale was a “sale” under the Mortgages Act, and once that was the case, then, the Bank had to complete the sale with the new Buyer. This case was later updated to include conditional sales.
Homeowners who were scrambling for the money got very upset. Banks, at that point updated their wording both in the actual mortgage as well as the Power of Sale Schedules that they used. However, over then next 10 or 15 years, many cases came up with the old wording, and hence the Logozzo decision applied. But now, we have updated documents in most cases. The POS Schedule will allow the Bank (Seller) to terminate the deal. Assuming it is correctly worded, the Homeowner has right until the closing day to pay up the arrears.
From the Buyer’s perspective then only thing that can be done is to close the deal asap. Ten days to close, but no more than 30, that might work. The Buyer’s agent should get a Form 127 signed. This deal is just like an “option to purchase”. It might close, and it might not.
Brian Madigan LL.B., Broker