Legal Blog

Redemption

Armanasco v. Linderwood Holdings Inc. 2016 Ont SCJ

Mortgagee sold under power of sale. The sale was not conditional in the usual sense, but allowed the mortgagee to escape liability if the mortgagor was able to redeem. The mortgagor attempted to derail the sale. The court held that the mortgagor had no right to redeem because (a) there was no fraud or bad faith in the sale, (b) the mortgagor had no privity of contract with the mortgagee by which the mortgagor could enforce the redemption clause in the agreement of purchase and sale, and (c) in any event, the mortgagor was not in a position to pay the funds necessary to redeem.