What is Power of Sale?
Power of sale is a legal process in Ontario, Canada, that enables lenders to sell a property that secures a loan if the borrower fails to make their payments. It is an important tool for lenders because it allows them to quickly and efficiently recuperate their funds.
When a borrower defaults on their loan, the lender can put the property up for sale and appoint a real estate lawyer who will manage the power of sale process. Ottawa Power of Sale lawyer is responsible for transferring the title of the property from the borrower to the buyer. The proceeds from the sale are used to pay off any outstanding mortgage balance, taxes and other costs incurred during the process. Any remaining funds are distributed among all parties entitled to receive them, including lien holders, creditors and prior owners if applicable.
It is important for borrowers facing the power of sale to understand their rights before proceeding with selling their property. Ottawa real estate lawyers can provide legal advice on how best to proceed with either contesting or settling power of sale claims and any possible financial relief options available under relevant provincial laws. As such, it is essential to seek advice from an Ottawa Power of Sale lawyer with experience handling these matters to ensure that your rights and interests are adequately protected throughout this process.
A Common Myth about Power of Sale
A common misconception about the power of sale is that the lender can sell a property for any amount they choose and that borrowers are not protected when it comes to their rights in the process. This is not true. The lender has an obligation to get a fair market value for the property, which means that it must be priced according to what similar properties are selling for in the area.
If you find yourself facing a power of sale and are worried about your rights and interests, it is important to consult with an Ottawa real estate lawyer who has experience handling these types of situations. They can help you understand your options, including how to contest or settle a claim against your property, as well as any possible relief available to you under relevant provincial laws. By working with an experienced lawyer, you can be confident that your rights and interests will be fully protected throughout the power of sale process.
How Can We Help?
If you are facing a power of sale, it is important to work with an experienced real estate lawyer who can help you understand your legal rights and options. At Nirman’s Law, our team has extensive experience working with both buyers and sellers throughout the power of sale process. We will work closely with you to protect your interests and help ensure that the sale proceeds smoothly and fairly.
Whether you need assistance understanding the process or require representation in negotiations with your lender, we are here to help.