legalprinciples
MortgageBroker mbabc.ca spring 2014 | 29
• A Summary Accounting of the amount
owing under the mortgage as of the date
of the Order Nisi;
• Judgment against all parties liable on the
Covenant, in the amount of the mortgage
debt as of the date of the Order Nisi;
• Court tariff costs.
Redemption period
In normal circumstances the redemption
period is set at six months. e redemption
period can be shortened or eliminated
4
if the lender can show some or all of the
following:
• e net sale proceeds of the property would
clearly be less than the mortgage debt;
• Abandonment of the property; or
• Consent of all parties.
4 For an analysis of the principles governing
shortening redemption periods, see for example
CIBC Mortgage Corporation v. Burnham
(1986) 2 B.C.L.R. (2d) 130 (B.C.S.C.)
Lender's remedies after the
redemption period expires
Aer the expiration of the redemption period,
a lender has two choices:
1. It can apply for an Order for Conduct
of Sale (allowing the lender to list the real
property for sale with a realtor); or
2. It can apply for Order Absolute (making the
lender the owner of the real property).
Approval of sale
Aer the property has been listed for sale with
a realtor for a reasonable time and the lender
has accepted an offer to purchase the property,
the lender can apply to the Court for an Order
approving the proposed sale.
Completion of sale
e party obtaining the Order approving a sale
has the responsibility of completing the sale
5
5 Roadburg v. Cedarhurst, (1981), 21 B.C.L.R.
114, (B.C.C.A.)
and the net sale proceeds are normally directed
by the Order to be paid as follows:
• Taxes, utilities, strata charges;
• Real estate commission;
• Lender's mortgage;
• Any balance to the borrower or into Court.
•
Andrew Bury is a partner in the Vancouver
office of Gowling Lafleur Henderson LLP, one
of Canada's oldest and largest law firms. He
attended UBC (BCom, JD) and the London
School of Economics (LLM). His practice is
largely restricted to loan security enforcement
and related collection, insolvency and real
estate matters. He is regarded as leading
counsel in his field.
is article was first published by the Society
of Notaries Public of British Columbia in
Scrivener magazine.
Vector Pacific Mortgage.indd 1 14-01-15 2:50 PM
p26-29_MortgageEnforcement.indd 29 14-05-08 2:31 PM
