Can a mortgagee sell to himself?
Alberta, Canada
The following excerpt is from Heritage Savings & Trust Company v. Unicorps International Investments Ltd., 1981 CanLII 1079 (AB QB):
Without more, a mortgagee cannot sell to himself. A mortgagee who sells is bound to sell fairly, and to take reasonable steps to obtain a proper price. He cannot place himself in a position which gives rise to a conflict of interest and duty: see Farrar v. Farrars Ltd., supra; where, however, the sale is not by the mortgagee but by the court the problem of conflict may not exist. The decision to sell, to whom and at what price is made by the court, not the mortgagee.
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