Power of Sale: The legal right of the mortgagee to force the sale of a property without judicial proceedings if a default may occur. Power of Sale is frequently used by the lender to remedy a default by a mortgagor. This action may only take place due to the inclusion in the mortgage document.
Notices: The mortgagee must wait for a minimum of 15 business days. Once this period expires a notice is issued exercising the power of sale. This notice must allow at least 35 days to remedy the problem. After the 35-day period has expired, a sale may take place. However the Mortgagee has a fiduciary responsibility to the Mortgagor to attain the full market value of the property.
Allen Mayer
www.commercialtoronto.com
