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Being a Canadian Real Estate Investor one should be aware of the Ontario Mortgage Act which have rights and privileges for the lender(bank) as well as the home buyer. As a professional Real Estate investor you will find knowing the Ontario Mortgage act gives you the edge to assist the distressed home owner as well as help the lender to resolve by doing so making a huge profit for themselves. When a home owner defaults the lender (bank) have the right to call off the mortgage and collect all the delinquent payments along with legal fees, administration fees, property management and the court costs. Since a default becomes a dispute, both the property owner and lender have to follow certain law to protect each other’s rights.Power of sale notice is issued by the lender upon default.

power of sale notice

Power of Sale Notice

In the Ontario Real Estate Investing both the parties are governed by the mortgage act under section 32 . The first power of sale notice of the exercise of a power of sale cannot be given until the default has continued for minimum 15 days. The sale cannot be made for at least 35 days after the first notice has been given, this is relevant to the mortgage act. If the power of sale is contractual the borrower (home owner) has 35 days to pay unless otherwise stated in the mortgage agreement. If the power of sale is statutory, the home owner has 45 days to come up with the money. Under the mortgage act the lender (bank) cannot take any further action during this redemption period. During this time, the home owner can pay the amount owing to the bank and bring the mortgage back into good standing.

In Real Estate investing , the secret to capture the pre foreclosure properties is to obtain proper education and thorough knowledge of the governing rules and the laws. And how it is really been implemented in real life

If the home owner is involved in bankruptcy and insolvency the notice of intention must be sent in accordance with the rule 13-1 of the bankruptcy and insolvency act . The bank initial demand for payment and notice of intention to enforce power of sale maybe delivered simultaneously. Subject to certain exceptions section 244(2) of the bankruptcy and insolvency act (in Canada), provides enforcement of lenders security may not precede until 10 days after the notice of intention to enforce the security has been sent.

If the mortgage property belongs to a farmer, section 21 on the farm debt mediation act .he / she requires the bank or the lender to give 15 business days written notice of its intention to realize upon its security. The power of sale notice must be given to the farmer about their right to make an application to an administrator for the relief of persistent to act to section 5 of form debt mediation act. Under this act section 5 may result in stay of proceedings against the farmer, during this period review of farmers financial affairs, farmers secured creditors, to assist the farmer to reach a mutually acceptable agreement.

We will continue this article about the power of sale notice shall be delivered to all parties concerned.

In Ontario Real Estate Investing, to learn the tricks of the trade (Ontario Mortgage Act) we have apprenticeship available known as Ontario Real Estate Millionaire Apprenticeship which includes two days of intensive training in class and one day field training which involves a trip to the Superior Court of Justice, Sheriff’s office to witness Writ of Possession.

World Wealth Builders offers many unique, practical, out of the box  real estate investor apprenticeship which offers the student hands on, in the trenches style instruction to facilitate both a different mindset as well as a successful and lucrative real estate investment business. You can attend Real Estate Millionaire  Apprenticeship online or in person. To find out more, please go to

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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