In Ontario, under what circumstances can a mortgage lender place a property under Power of Sale proceedings?
Correct Answer
D) After 15 days default and proper notice is given
Under Ontario's Mortgages Act, a lender can exercise Power of Sale after the borrower has been in default for 15 days and proper notice has been given to the borrower. This is an out-of-court process that allows lenders to sell the property without going through foreclosure proceedings, making it faster than judicial foreclosure.
Why This Is the Correct Answer
Option D is correct under Ontario's Mortgages Act, which specifically allows lenders to commence Power of Sale proceedings after a borrower has been in default for 15 days, provided proper notice has been given. This statutory requirement balances lender recovery rights with borrower protection. The notice requirement ensures borrowers have opportunity to cure the default before sale proceedings begin. This is an out-of-court process that makes it more efficient than judicial remedies while maintaining procedural fairness.
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