Court of Appeal: good faith purchaser gets “safe harbour”
Alan Kay of Pallett Valo LLP brings our attention to the Court of Appeal’s recent decision protecting good faith buyers under Powers of Sale.
In his article “Court of Appeal Upholds Power of Sale Safe Harbour Protection” he looks at 2544176 Ontario Inc. v. 2394762 Ontario Inc., 2022 ONCA 529 (CanLII). In that case a mortgagee had failed to produce a default statement when requested by the mortgagor. The house was seized under power of sale, and sold, but a Superior Court judge held that mortgagees’ power of sale was suspended at the time they purported to transfer the property to the good faith buyer, and so set aside the transfer. The Court of appeal set that aside, holding that “safe harbour” provisions found in the Mortgages Act and the Land Titles Act: the good faith purchaser kept the property.
Read the whole thing.