Ontario
Question:
After power of sale proceedings are initiated and when the house is listed can the Owner who “went under” bring his account back to good standings and have listing cancelled after 35 days?
Answer:
The “35 days” is the normal redemption period.
The Mortgagee can pay up the arrears after the 35 day period set out in the Mortgages Act, (sometimes increased to 45 days in the standard Charge Terms affecting a particular mortgage) until the property is “sold”.
The Courts have concluded that “sold” means an unconditional agreement of purchase and sale. It doesn’t refer to the actual closing or completion date or require a conveyance to be registered.
So, after that it would be too late. There is also one case which holds that a conditional Offer is still a sale, that that could not be set aside.
Obviously, if you are advising the one who is in default: act quickly!
Brian Madigan LL.B., Broker