Mortgagor’s Options Under Power of Sale

Before Unconditional Sale

✔ Redeem mortgage by paying arrears or full balance

✔ Refinance or negotiate with lender

✔ Equity of redemption still alive

After Unconditional Sale (APS signed)

❌ Equity of redemption extinguished

✔ May challenge mortgagee for improvident sale or statutory breach (s.22, s.27 Mortgages Act)

✔ If purchaser bona fide & protected by safe harbour → Title secure, only damages claim possible

✔ Still entitled to any surplus sale proceeds

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com