What happens if I default on my Mortgage? A mortgage on your home will most likely be the most significant debt you will incur in your lifetime. A commitment in which you will be obligated to pay for a considerable amount of time – in the majority of cases anywhere between 10-30 years. That said, when a borrower defaults on their loan and from their obligations in the mortgage agreement, the lender has two possible remedies. Power of sale This is the most frequently used remedy. Pursuant to Ontario’s Mortgage Act upon a mortgage default the lender is entitled to determine that the mortgaged property in question should be sold to a third party. This remedy, if you will, is by far the least complicated and permits the lender to recoup the balance remaining. The lender however, must give the borrower written notice by registered mail 45 days after default. The lender does have a legal obligation to sell the property at the fair market. If there is equity in the property, the remaining balance will go to the borrower after the mortgage balance and any other associated fees such as legal fees have been paid. If the sale does not cover the balance of what is owed, the borrower is still liable for the remaining balance. This process can only be prevented by the borrower paying the arrears and the lenders legal fees or by payment of the remaining balance of the defaulted loan in its entirety. Foreclosure Foreclosures is a legal proceeding initiated by the lender to obtain the full legal title to the asset outlined in the mortgage agreement. If the value of the asset is less than what is owed, the lender cannot pursue the borrower for the remainder. Should there be equity in the property or proceeds remaining from a subsequent sale, the lender is under no obligation to account the borrower for the equity, or the proceeds. Contact Robert Adourian, of Devry Smith Frank LLP, for experienced assistance with both commercial and residential real estate. robert.adourian@devrylaw.ca or 416-446-3303 “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateApril 12, 2019July 5, 2023
I’m preparing to Close on My Residential Mortgage. What Identification Will I Need? Buying a home is possibly one of the most significant and costly purchases in one’s lifetime. Finding that picture – perfect home and probably feeling, to some extent, a little overwhelmed is common. However, getting to the stage of closing and what to expect is often a thought that goes overlooked. A question to ask yourself is, how prepared are you for that day? After all, this is the time when you will legally commit to your mortgage loan. All the more reason for you to be prepared in advance, before the day approaches. That said, familiarity with your closing team, is also fundamental. There are a number of people you will encounter throughout the closing process and although closing methods may differ your team will likely consist of: – Real estate agents representing both buyer and seller – Your lawyer – The seller’s lawyer – A representative from your lender Lawyers and mortgage lenders are required to obtain identification documents from you, thus having the appropriate identification is an additional legal requirement for you to consider. When the time comes to sign your real estate documents, two forms of identification must be provided. One must be government issued photo I.D. such as an Ontario drivers licence or a Canadian passport. The other piece, can be a credit card or social insurance card. Your lawyer will document the details from the required I.D., as well as your occupation. If the need for review should arise, identity verification of the persons buying or selling property in Canada is easily obtained. At the same time, remember to take all the time you need and ask all the questions that are on your mind. Purchasing a home, is a long-term financial commitment and essentially you want ensure you are content with all aspects of the transaction. At Devry Smith Frank LLP, we are well equipped to handle a vast range of matters pertaining to real estate and property transactions. We aim to provide promptness, precision and understanding to all our clients, engaging with you from the beginning stages of your purchasing journey to the closing of your dream property. Communicating any vague or unclear legal terminology encountered along the way, in simple terms. Our aim is to make the course of your property buying experience a stress-free process. Contact Robert Adourian, of Devry Smith Frank LLP, for experienced assistance with both commercial and residential real estate. Robert.Adourian@devrylaw.ca or 416-446-3303 “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJanuary 18, 2019July 5, 2023
Identification Requirements for Real Estate Transactions An important part of preparing for a real estate transaction is making sure that you have sufficient identification documents to satisfy the requirements of your realtor, lawyer and mortgage lender. Each of these professionals will require that you provide documents to verify your identity. The usual requirement is two pieces of valid and unexpired identification documents, one of which must be photo identification. Examples of acceptable photo identification are an Ontario drivers licence, an Ontario Identification Card, or a Canadian Passport. The second piece of ID could be one of the foregoing, a Canadian Social Insurance Card or a credit card issued by a major Canadian financial institution. Your lawyer will document the details from the required I.D, and will also make note of your occupation and the name, address and telephone number of your employer The Non-Resident Speculation Tax imposes a 15% tax on the purchase or acquisition of an interest in residential real estate by non-residents of Canada in the Greater Golden Horseshoe Region (GGH). This includes the following geographic areas: City of Barrie County of Brant City of Brantford County of Dufferin Regional Municipality of Durham City of Guelph Haldimand County Regional Municipality of Halton City of Hamilton City of Kawartha Lakes Regional Municipality of Niagara County of Northumberland City of Orillia Regional Municipality of Peel City of Peterborough County of Peterborough County of Simcoe City of Toronto Regional Municipality of Waterloo County of Wellington, and Regional Municipality of York. In order to be exempt from this tax individuals must provide evidence that they are Canadian citizens or Permanent Residents of Canada. Your lawyer will require that you sign a sworn declaration to this effect, and you may also be required to provide proof of your status in the form of a Canadian passport, Canadian citizenship card or Permanent Resident Card. Prior to entering into a contract to buy or refinance real estate, you should consult with a lawyer and make sure that you have all the documentation required to satisfy the requirements of your realtor, lawyer and mortgage lender. At Devry Smith Frank LLP , we are well-equipped to handle your real estate transaction. We provide promptness, precision and understanding to all our clients, engaging with you from the beginning stages of your purchasing journey to the closing of your dream property. We pride ourselves on our ability to clarify vague or unclear legal terminology, and to communicate with our clients in clear and simple terms. For experienced assistance with both commercial and residential real estate, contact: Louis Gasbarre at 416-446-3318 or by email at louis.gasbarre@devrylaw.ca or Robert Adourian at 416-446-3303 or by email at robert.adourian@devrylaw.ca “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJanuary 18, 2019July 5, 2023
