What is a mortgagee's duty to secure a reasonable price for a property subject to foreclosure and sale?
New Brunswick, Canada
The following excerpt is from Xceed Mortgage Corp. et al vs. Matte, 2014 NBQB 98 (CanLII):
[41] A mortgagee owes a duty of care to a mortgagor to secure a reasonable price for a property subject to foreclosure and sale. Lord Denning in Standard Chartered Bank v. Walker, [1982] 3 All E.R. 939 at p. 942 writes: …it is the [mortgagees] duty to use reasonable care to obtain the best possible price which the circumstance of the case permits. He owes this duty not only to himself (to clear off as much of the dept as he can) but also to the mortgagor so as to reduce the balance owing as much as possible, … If it should appear that the mortgagee… [has] not used reasonable care to realize the assets to the best advantage, then the mortgagor… [is] entitled to equity in allowance.
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
When a mortgagee buys a mortgage property at a price that cannot be seen to reasonably reflect the true market value at the time of the sale of the mortgage, is the deficiency calculated at the subsequent sale? (New Brunswick, Canada)
What is the difference between a mortgagee and mortgagee when the mortgagee buys in at the mortgage sale and later sells the property to a third party? (New Brunswick, Canada)
Does the presumptive nature of the marital property legislation apply to the provability of the family property claim in bankruptcy? (New Brunswick, Canada)
Can a property owner with a multi-use building whose property is a non-conforming use, move his tenants about the building without PAC approval? (New Brunswick, Canada)
Is there a specific performance of a contract for the sale of reality? (New Brunswick, Canada)
What is the meaning of the word "reasonable person" in the assessment of credibility? (New Brunswick, Canada)
Is there a conflict in the assessment of reasonableness between two separate decisions? (New Brunswick, Canada)
What is the test for establishing a reasonable assumption of jurisdiction in real and substantial connection? (New Brunswick, Canada)
What is the objective component of an ITO and what is the subjective component? (New Brunswick, Canada)
When will a defence counsel ask the complainant a few general questions about their sex practices that involve the complainant's personal security or privacy? (New Brunswick, Canada)
