Summary
If a buyer defaults on a vendor take back mortgage in Ontario, you can send a demand letter, initiate foreclosure, or use power of sale. Foreclosure involves sending a notice of default and filing a statement of claim with the Ontario Superior Court of Justice. Power of sale requires issuing a notice of sale and providing a redemption period before selling the property.Full Conversation
I sold a house in ontario canada and gave the buyer a 1 year vendor take back mortgage. the year has passed and he did not pay, what can I do?
Hi ****, you have a few options to consider in Ontario:
- **Demand Payment**: Send a formal demand letter to the buyer.
- **Foreclosure**: Initiate foreclosure proceedings to take back the property.
- **Power of Sale**: Sell the property to recover the owed amount.
Have you attempted any communication with the buyer regarding the missed payment?
yes we have a communicated to the buyer and he said he does not have the money to pay
****, since the buyer has indicated they cannot pay, you may need to take further legal action:
- **Demand Payment**: Send a formal demand letter to the buyer.
- **Foreclosure**: Begin foreclosure proceedings to reclaim the property.
- **Power of Sale**: Sell the property to recover the owed amount.
Would you like more information on initiating foreclosure or power of sale in Ontario?
yes please
In Ontario, here are the steps you can take to initiate foreclosure or a power of sale:
**Foreclosure**:
- **Notice of Default**: Send a notice of default to the buyer.
- **Court Process**: File a statement of claim with the Ontario Superior Court of Justice.
- **Judicial Sale**: If the buyer doesn't pay, request the court to order a sale of the property.
**Power of Sale**:
- **Notice of Sale**: Issue a notice of sale to the buyer.
- **Redemption Period**: Provide the buyer a redemption period (typically 35 days) to pay the owed amount.
- **Sell the Property**: If the buyer doesn't pay, sell the property to recover the owed amount.
Ontario Superior Court of Justice
Phone: (*) *-*
Website: www.ontariocourts.caWould you like assistance drafting a notice of default or sale?
yes please
Great, ****. Here are some points to consider when drafting a notice of default or a notice of sale:
Notice of Default:
- Clearly state the default in payment.
- Include the amount owed and any interest accrued.
- Specify a deadline for payment to avoid further legal action.
- Mention the possibility of foreclosure or power of sale if payment is not made.
Notice of Sale:
- Clearly state the default and the amount owed.
- Provide a redemption period (typically 35 days).
- Outline the steps that will be taken if the payment is not made, including the sale of the property.
Would you like a template for either notice?
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