Understanding Power of Sale in Durham, Ontario

Buying or selling a power of sale property in Durham can be an opportunity, but it’s also a process that many homebuyers don’t fully understand. Unlike foreclosure, which is more common in the U.S., Ontario uses the power of sale process to allow lenders to recover mortgage debt when a homeowner defaults.

If you’re considering purchasing a power of sale home in Durham Region, here’s what you need to know.

What Is a Power of Sale?

A legal process in Ontario where a lender sells the property when the borrower defaults.
The sale happens without court involvement, unlike foreclosure.
The lender must follow specific provincial laws to ensure fairness.

Why Power of Sale Happens

Missed mortgage payments.
Unpaid property taxes.
Breach of mortgage terms.
Lender decides to recover debt through property sale.

How the Power of Sale Process Works in Durham

Default occurs (missed payments).
Notice of Sale is issued to the borrower.
Redemption period allows borrower to pay arrears and stop the process.
If unpaid, lender lists the property for sale (usually through MLS® and real estate agents).
Sale proceeds are used to:
- Pay off mortgage debt
- Cover legal costs
- Return any surplus to the homeowner

Pros of Buying a Power of Sale Property

Potential for lower purchase price.
More availability in Durham Region as market conditions change.
Often listed on MLS®, making them accessible to the public.

Cons of Buying a Power of Sale Property

Homes are sold “as-is” — no guarantees on condition.
Limited opportunity to negotiate repairs.
Potential hidden issues (structural damage, unpaid utilities, etc.).

👉 Related: 10 House Hunting Tips in Canada

How a Real Estate Lawyer Helps

Reviews the Agreement of Purchase & Sale.
Ensures no legal claims remain on the property.
Confirms clear title transfer.
Advises on risks of “as-is” purchases.

Durham Region Hotspots for Power of Sale Homes

Oshawa – Affordable detached homes & investment properties.
Whitby – Family-friendly communities with resale potential.
Ajax & Pickering – Closer to Toronto, competitive but valuable.
Clarington & Bowmanville – Growing suburban markets with options for retirees and families.

Tips for Buying a Power of Sale Property in Durham

Always budget for repairs and renovations.
Work with an experienced agent familiar with power of sale deals.
Hire a real estate lawyer before signing.
Get a home inspection where possible.

Final Thoughts

The power of sale process in Durham offers unique opportunities for buyers seeking affordable homes or investment properties. However, it also comes with risks that require professional guidance.

With the right real estate agent and lawyer, you can navigate the process safely and secure a property that meets your needs.

Looking to explore current listings? Contact Durham Power of Sale for the latest opportunities.