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What is a Eviction Notice in Ontario

An Eviction Notice is one of the final steps in Ontario’s Power of Sale process. At this point, the lender has already sent the Writ of Possession to the local sheriff office. At the time and date specified by the notice, a sheriff will come and evict the property’s occupants and change the locks on the doors. The occupants will be given a small amount of time to collect some possessions and then will be escorted out of the property. At this point, the only way to stop the eviction is to pay the lender in full. This includes the mortgage principal, interest, and all related expenses incurred by the lender.

Ontario Eviction Notice EXAMPLE 1

What Happens After an Eviction Notice

Once the eviction notice is delivered and the occupants are removed, the lender will prepare to sell the property. Typically the property is listed and sold using a licensed Ontario real estate agent. In some rare cases the property is sold privately, but in every case, the lender is legally obligated to sell the property for fair market value. Properties in Ontario typically take over a month to sell and after the property is sold, the lender pays their lawyers, real estate agent and other related fees, all mortgages and other secured debts are paid off, and then the remaining profit is given to the homeowner. Typically the fees involved with processing the power of sale are quite high and very little profit remains for the homeowner.

Possible Solutions

If you’ve received an eviction notice but are still living in the property then you still have full control over selling the property or getting a new mortgage. During the limited time you have remaining, if you can sell the property then the power of sale action will stop. Typically you will need to sell it at a discount in order to encourage a quick sale. Many private lenders who purchase properties will pay with cash which means that the current mortgage can be paid immediately as the buyer does not have to wait for financing. If there is a large amount of equity in the property a private lender may be able to quickly appraise the property and provide the financing needed to stop the power of sale.

If you have already been evicted then the solutions are more difficult since most home buyers want to inspect the property and most private lenders want an appraisal. At this point, the previously mentioned solutions will still work, but the homeowner must request a supervised visit for any inspections to take place. The cost of the supervised inspection is charged back to the mortgage as a fee related to the power of sale. Generally, the lender performing the power of sale will not allow the homeowner back in to live in the property unless financing has been secured or the house has a firm purchase offer.

Important Legal Notice

The above information is general advice and it is strongly recommended to seek a legal professional when dealing with an Eviction Notice in a Power of Sale scenario. A Power of Sale can be a very complex legal process depending on the circumstances. Our team includes lawyers who specialize in Power of Sales and real estate law. For a free consultation please call 416-499-2122 or email ron@powerofsalesontario.ca.

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