Mortgage Broker

Summer 2019

Mortgage Broker is the magazine of the Canadian Mortgage Brokers Association and showcases the multi-billion dollar mortgage-broking industry to all levels of government, associated organizations and other interested individuals.

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Page 17 of 47

18 | summer 2019 CMB MAGAZINE A s much as I oen hear that the Canadian legal system moves slowly, way too slowly, the law does evolve. As cases weave their way through the courts, the law changes, adapts and fine-tunes legal issues. As such, the mortgage practitioner is well served by keeping up with the changes. I will attempt to highlight a few. A. THE LIMITATION ACT, RENEWALS, AND ON-DEMAND MORTGAGES Prior to examining a recent 2018 case by the British Columbia Court of Appeal that addresses the new Limitation Act in British Columbia, a quick recap of the Limitation Act and how it affects lenders is prudent and necessary. Quite oen mortgage terms change as between the lenders and borrowers over the lifespan of the mortgage. Many changes do not require registration in the land title office. ese amendments are usually made CHOOSING TO AVOID THE STORM NEW CASE LAW AND PRACTICE POINTS FOR MORTGAGE PRACTITIONERS BY TIMOTHY LACK, LL.B. informally without the use of legal counsel or other formalities. I recommend familiarizing yourself with the various forms of renewal agreements. While a straightforward document, many lenders use their own form of document to cra their renewals without the use of counsel. e major concern with renewals is that registered mortgages are subject to the Limitation Act. PRACTICAL TAKEAWAY: In British Columbia, mortgages are subject to the Limitation Act and lenders need to be wary of the shortened two-year term. Brokers, lawyers and professionals should be vigilant and warn clients who wrongfully assume that registration of a mortgage creates an enduring and endless security. Recently, the British Columbia Court of Appeal addressed the new Limitation Act and how it affects "on-demand" mortgages in Leatherman v. 0969708 B.C. Ltd., 2018 BCCA 33. You will recall that these types of mortgages newcaselaw

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