Power of Sale FAQ
General information only, not legal or financial advice. Every power of sale is different. Before you buy, sell or sign anything, get independent legal advice from a real estate lawyer who acts for you.
Short, plain answers. For the full walk-through, read the power of sale buyer's guide.
What is a power of sale?
It is when a mortgage lender sells a home because the owner fell behind on the mortgage. In Ontario the lender can do this without going to court, as long as it follows the notice rules in the Mortgages Act.
Is a power of sale the same as a foreclosure?
Not quite. In a power of sale the lender sells the home and pays itself what it is owed; any money left over goes to others with a claim on the home, then the owner. In a foreclosure the lender takes ownership through the court. In Ontario, lenders usually use power of sale.
Are power of sale homes cheaper?
Not necessarily. Some need work, which can show in the price. Compare each one with recent sales of similar homes nearby and judge it on its own numbers.
Can I get a home inspection?
Often yes, but it depends on the lender's terms and how competitive the offer needs to be. Many buyers book an inspection before they make an offer so they can offer with fewer conditions.
What does "as is, where is" mean?
It means the lender makes no promises about the home's condition or what is inside it. Anything wrong with the home after closing is the buyer's to fix.
Can I get a mortgage on a power of sale home?
Yes. You finance it like any other purchase. Get pre-approved before you offer, because lenders selling under power of sale often prefer offers with few conditions and a set closing date.
What is the lender's schedule?
It is a set of terms the selling lender adds to the agreement. It usually limits the lender's responsibility and can change deadlines. Read it with your agent and your lawyer before you sign.
How much deposit do I need?
Your offer sets the deposit amount, when it is paid, and who holds it (usually in trust by a brokerage). If the deal falls through because of something on your side, you can lose it.
Can the owner stop the sale?
Sometimes. The owner may be able to bring the mortgage back into good standing before the sale is completed. Your lawyer will confirm where things stand before closing.
What if someone is still living in the home?
Many power of sale homes are vacant when they sell, but not all. If the home is occupied, ask what the lender will do about it before closing, and get your lawyer's advice.
Do I need a lawyer?
Yes. A real estate lawyer checks the title, confirms the lender followed the notice rules, looks for liens or unpaid taxes, and handles the closing.
How do I hear about new power of sale listings?
Save a search on this site and you will get an email when a new match goes live. Listings update nightly from the REALTOR.ca data feed.
See a home you like? Start here.
Save a search and new power of sale listings reach your inbox the day they go live. Or send Kai a question, about one property or the process in general.
Get new listing alerts