{"id":8965,"date":"2022-07-16T09:29:44","date_gmt":"2022-07-16T13:29:44","guid":{"rendered":"https:\/\/360mediations.com\/en\/?p=8965"},"modified":"2022-07-16T09:29:47","modified_gmt":"2022-07-16T13:29:47","slug":"safe-harbour-protections-of-land-titles-act-saves-innocent-purchaser-in-mortgage-default-sale","status":"publish","type":"post","link":"https:\/\/mail.360mediations.com\/en\/safe-harbour-protections-of-land-titles-act-saves-innocent-purchaser-in-mortgage-default-sale\/","title":{"rendered":"Safe Harbour Protections of Land Titles Act Saves Innocent Purchaser in Mortgage Default Sale"},"content":{"rendered":"\n<p>When mortgages go into default, the mortgagee (ie: the lender) can take sale proceedings, however, there is a process that must be followed.\u00a0 If the process is not followed, the entire sale can be set aside.\u00a0 In this recent case, the appellate court was dealing with a mortgage default sale that was faulty because the mortgagee failed to give the mortgagor (ie: the borrower) a default statement as required under section 22 of the <em>Mortgages Act<\/em>, R.S.O. 1990, c.M.40.<\/p>\n<p>Despite the non-compliance, an agreement of purchase and sale with an innocent bona fide purchaser for value without notice of the default was completed.\u00a0 The question before the court was whether the sale transaction should be set aside.\u00a0 The lower court set aside the transaction, but the appellate court concluded that this was an error in law: sections <a href=\"https:\/\/www.canlii.org\/en\/on\/laws\/stat\/rso-1990-c-m40\/latest\/rso-1990-c-m40.html#sec35_smooth\">35<\/a> and<a href=\"https:\/\/www.canlii.org\/en\/on\/laws\/stat\/rso-1990-c-m40\/latest\/rso-1990-c-m40.html#sec36_smooth\"> 36<\/a> of the <a href=\"https:\/\/www.canlii.org\/en\/on\/laws\/stat\/rso-1990-c-m40\/latest\/rso-1990-c-m40.html\"><em>Mortgages Act<\/em><\/a> and <a href=\"https:\/\/www.canlii.org\/en\/on\/laws\/stat\/rso-1990-c-l5\/latest\/rso-1990-c-l5.html#sec99subsec1.1_smooth\">section 99(1.1)<\/a> of the <a href=\"https:\/\/www.canlii.org\/en\/on\/laws\/stat\/rso-1990-c-l5\/latest\/rso-1990-c-l5.html\"><em>Land Titles Act<\/em><\/a><a href=\"https:\/\/www.canlii.org\/en\/on\/laws\/stat\/rso-1990-c-l5\/latest\/rso-1990-c-l5.html\">, R.S.O. 1990, c. L.5<\/a> (aka the \u201c<strong>Safe Harbour Protections<\/strong>\u201d) provided an innocent purchaser taking property under the power of sale process, with good title, on registration under the <a href=\"https:\/\/www.canlii.org\/en\/on\/laws\/stat\/rso-1990-c-l5\/latest\/rso-1990-c-l5.html\"><em>Land Titles Act<\/em><\/a> system.\u00a0 In this case, the mortgagee made certain declarations to the innocent purchaser professing that they had complied with the power of sale process, such that any remaining dispute over the power of sale process had to be resolved between the mortgagor and the mortgagee: the innocent purchaser for value got to retain the property.<\/p>\n<p><strong>\u00a0<\/strong><strong>2544176 Ontario Inc. v. 2394762 Ontario Inc<\/strong>., 2022 ONCA 529<\/p>\n<p><a href=\"https:\/\/www.canlii.org\/en\/on\/onca\/doc\/2022\/2022onca529\/2022onca529.html\"><strong>https:\/\/www.canlii.org\/en\/on\/onca\/doc\/2022\/2022onca529\/2022onca529.html<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When mortgages go into default, the mortgagee (ie: the lender) can take sale proceedings, however, there is a process that must be followed.\u00a0 If the process is not followed, the entire sale can be set aside.\u00a0 In this recent case, the appellate court was dealing with a mortgage default sale that was faulty because the&hellip; <a class=\"more-link\" href=\"https:\/\/mail.360mediations.com\/en\/safe-harbour-protections-of-land-titles-act-saves-innocent-purchaser-in-mortgage-default-sale\/\">Continue reading <span class=\"screen-reader-text\">Safe Harbour Protections of Land Titles Act Saves Innocent Purchaser in Mortgage Default Sale<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[150,53,45],"tags":[],"class_list":["post-8965","post","type-post","status-publish","format-standard","hentry","category-contract-law","category-court-practice","category-real-estate","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Safe Harbour Protections of Land Titles Act Saves Innocent Purchaser in Mortgage Default Sale - 360Mediations<\/title>\n<meta name=\"description\" content=\"If a buyer of a power of sale property is completely unaware that the power of sale process was not properly followed, the sale will likely be upheld by the court.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/360mediations.com\/en\/safe-harbour-protections-of-land-titles-act-saves-innocent-purchaser-in-mortgage-default-sale\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Safe Harbour Protections of Land Titles Act Saves Innocent Purchaser in Mortgage Default Sale - 360Mediations\" \/>\n<meta property=\"og:description\" content=\"If a buyer of a power of sale property is completely unaware that the power of sale process was not properly followed, the sale will likely be upheld by the court.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/360mediations.com\/en\/safe-harbour-protections-of-land-titles-act-saves-innocent-purchaser-in-mortgage-default-sale\/\" \/>\n<meta property=\"og:site_name\" content=\"360Mediations\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/360Mediations-120028596572318\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/360Mediations-120028596572318\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-16T13:29:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-16T13:29:47+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/mail.360mediations.com\/en\/wp-content\/uploads\/2022\/01\/COURT-DECISIONS-360MEDIATIONS-1x1-1.png?fit=406%2C322&ssl=1\" \/>\n\t<meta property=\"og:image:width\" content=\"406\" \/>\n\t<meta property=\"og:image:height\" content=\"322\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"David M. 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