Subpart 7Mortgagees’ power of sale

Exercise of power of sale

176 Duty of mortgagee exercising power of sale
  • (1) A mortgagee who exercises a power to sell mortgaged property, including exercise of the power through the Registrar under section 187, or through a court under section 200, owes a duty of reasonable care to the following persons to obtain the best price reasonably obtainable as at the time of sale:

    • (a) the current mortgagor:

    • (b) any former mortgagor:

    • (c) any covenantor:

    • (d) any mortgagee under a subsequent mortgage:

    • (e) any holder of any other subsequent encumbrance.

    (2) A mortgagee who exercises a power to sell mortgaged property may not become the purchaser of the mortgaged property except in accordance with section 196 or an order of a court made under section 200.

    Compare: 1952 No 51 s 103A