Podcast Episode 4: “Mortgage Basics 4/9 – The Alberta Difference.”
The next part of this mortgages mini series looks at how things are different in Alberta. There is a unique wrinkle regarding borrower’s liability in the event of a foreclosure…
C. Alberta Mortgage Law
Some principles of mortgage law specific to Alberta include the following:
i) No Action on the Covenant
In Alberta, a critical divergence from the general principles is that in the event of default on a conventional mortgage, the lender’s remedy is restricted to foreclosure against the land and the lender is unable to enforce any covenant in the mortgage against the borrower personally in the event of a deficiency. What a huge difference! In other words, the borrower is not liable to the lender for any deficiency that may exist after foreclosure.
Alberta mortgages require an Alberta lawyer. Contact Barry today.