These terms describe different routes for dealing with a property when a borrower defaults. Knowing which process applies is an important first question—not a substitute for reviewing the actual sale documents.
Three processes, different roles.
| Process | Starting distinction |
|---|---|
| Court-appointed receivership | A court appoints a receiver to take control of assets and carry out the powers set out in the appointment order. |
| Power of sale | A lender exercises a power to sell the property to recover mortgage debt, rather than simply becoming the owner. |
| Foreclosure | A lender seeks ownership through a court process. |
Questions to bring to your team.
- Who has the authority to sell this property?
- What documents govern the sale?
- Are court approval or other conditions involved?
- What should your lawyer review before you make an offer?
Start with the documents.
A listing label does not explain every legal or financial consequence. Ask your lawyer how the specific transaction affects title, the sale terms, and your obligations.
This is a concise overview of the topic in Tony’s original article. For advice about a particular property or notice, consult your own legal professional.
Reading: Tony’s original article ↗ · Ontario Mortgages Act ↗