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Foreclosure Rules in British Columbia

In the province of British Columbia, the process of judicial sale involves licensees very frequently.

Any of the respondents, who may be the first, second, the third Mortgagee, or the petitioners are endowed with the power to apply for a judicial sale. This sale is also referred to as a court-ordered sale and it can be conducted under the careful supervision of the Canadian court. That is how Canada foreclosure proceedings happen in this province.

To understand the entire process of Canada foreclosure and judicial sale in this province, let us start from the beginning. The judicial sale process is initiated with a “Demand Letter” given to the borrower. A certain amount of time is given to the borrower to pay out the mortgage. The next step goes like this. In the registry of BC Supreme Court a petition is filed and it starts an action.

The Order Nisi is responsible for fixing up the time required for redemption. The redemption period is generally six months. This period is given to the borrower for redeeming the mortgage and he also gets the amount needed. Where a respondent or a lender applies for this kind of an order, the person may assure the court that the monetary value of the property is quite high and sufficient to satisfy the prices of the sale as well as the claim of the petitioner. If the property in question is sold off under judicial sale, then the petitioner is qualified to retrieve from the borrower, the difference in the sale proceeds as well as the mortgage debt.


Once a respondent or a petitioner is allowed a conduct of sale, he or she can function the part of a vendor pursuant to the Court’s Order, but only for aims of disposition of the property, and can then list the asset for sale with a realtor. When a party expresses a keen interest in making a good offer, their selling agent or realtor will then draft an offer to be directed to the Vendor, who is generally one of the Mortgagees. At the same time, their realtor needs to affirm that the buyer is aware that even though they will negotiate with the vendor and a good deal will be agreed on, there may be a probability that, when the courts receive the offer, it may encounter a sealed bid process by some other purchasers.

Once the offer is settled on and the terms are also agreed to, the buyer begins his or her Subject Period. If the purchaser takes away its subjects, then the offer will be introduced to court. The process follows in the courtroom like this: First the vendor’s lawyer places the purchasers’ offer in front of the Judge. In Canada foreclosure proceedings, they are called Masters. Then the Master or the Judge enquires if there are other parties as well in the courtroom who may like to submit their offers too. If there aren’t any, an proper marketing has taken place and the offer’s price is market value, then the Master approves the sale. In case there are competing offers present in court, then the Master will give instructions to all parties, even to the original buyer to leave the courtroom and then resubmit their last offers in sealed envelopes to the vendor’s lawyer. After the submission of these offers, the Master reviews them and approves the best possible deal.

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