Mortgage Broker

Spring 2014

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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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

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