MORTGAGEBROKER mbabc.ca summer 2015 | 29
civilforfeiture
You are a registered mortgage broker who is a lender and have funded a mortgage secured by
two pieces of real estate. During the term of the mortgage, the government confiscates the two pieces of real
estate alleging that one housed a marijuana grow operation (MGO) and the other was paid for by profits from
the MGO. e borrower is never charged with any offence but the government is nevertheless successful in
its application to have the Court confirm the forfeiture of the property as lawful. You are concerned you might
have lost your mortgage investment.
.
Is the above scenario a baseless nightmare or is it a realistic possibility?
It is a realistic possibility. Is your interest, as the lender, subject to forfeiture? Depending on your degree of
knowledge concerning the MGO, your interest might be subject to forfeiture.
.
We will look at the basis for these
conclusions and provide some suggestions to limit the possibility that the mortgage investment will be forfeited.
Up In
Smoke
Are you in danger of
losing your investment to
a government property
seizure?
BY Ray Basi
