Foreclosure Process in Alberta-Canada

In Canada, all mortgages are governed by separate provincial statutes. And each province has its own different ways of dealing with the Foreclosure Process. The Foreclosure Process in Alberta is similar to that of British Columbia, since both provinces utilize Judicial Sale. In Alberta, though, all foreclosures are carried out under the Court of Queen’s Bench.

There are two different types of mortgages used in Alberta. This first is the Land Titles Act Mortgage. The second type of mortgage is the equitable mortgage.

The Lands Titles Act mortgage is used in accordance with the terms of the Land Titles Office. The Act outlines the requirements of each mortgage and provides the form of mortgage that must be used. For example, when a lender lends the money to a farmer using this type of mortgage, the mortgage is registered against the Certificate of Title by consent of the farmer as security. The registrar will then endorse the back of the certificate with the word Mortgage and a registration number, making the agreement official.

 An Equitable mortgage is as valid and enforceable as the Land Titles Act mortgage. With this type of mortgage, when a farmer is a registered owner of the land, a duplicate Certificate of Title for this land is prepared as well as an original. When an equitable mortgage is created, the farmer gives the duplicate Certificate of Title to the lender as a security for the mortgage (debt). The lender can also register the mortgage by filing a caveat against the Certificate of Title.

When and if the farmer defaults under the terms of the mortgage, the lender is entitled to recover the debt from the mortgaged land. To enforce the Foreclosure process, the lender has to follow the legal and very complex procedure. The foreclosure process is the same for both the Land Title Act mortgage and Equitable mortgage.

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The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case.

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