Frequently Asked Questions
Everything you need to know about power of sale properties in Ontario.
About Power of Sale
- What is a power of sale property?
- A power of sale is a mortgage enforcement process in Ontario where a lender can list and sell a property after the borrower defaults, following the required notice and sale rules. These properties are often sold as-is, so buyers should complete careful due diligence before making an offer.
- How is power of sale different from foreclosure?
- In Ontario, power of sale is more common than foreclosure. With power of sale, the lender sells the property but the homeowner retains any equity after the mortgage and costs are paid. In foreclosure, the lender takes full ownership of the property. Power of sale is typically faster and less expensive for all parties.
- Can anyone buy a power of sale property?
- Yes, power of sale properties are listed on the open market and anyone can purchase them. They're typically sold through real estate agents like any other property. However, buyers should be aware that these properties are often sold "as-is" and may require additional due diligence.
- Why are power of sale properties priced lower?
- Lenders selling power of sale properties are primarily focused on recovering their loan amount, not maximizing profit. They also want to sell quickly to minimize carrying costs. This motivation often results in properties being priced below comparable market values, creating opportunities for buyers.
- What should I look out for when buying a power of sale property?
- Power of sale properties are typically sold "as-is," so thorough inspections are essential. Check for deferred maintenance, liens, outstanding property taxes, and any encumbrances on the title. Working with an experienced real estate lawyer who can conduct proper due diligence is highly recommended.
Using Our Platform
- Is this service free to use?
- Yes, browsing our listings is completely free. You can create a free account to save searches and receive alerts when new properties matching your criteria become available. We're committed to making power of sale property information accessible to everyone.
- How often are listings updated?
- Our database is updated daily with new listings from multiple MLS boards and lender sources across Ontario. We also remove sold or withdrawn listings to ensure you're always seeing current, active opportunities.
- Why do some listings require me to log in?
- Some listings are subject to real estate board regulations that require user authentication before displaying certain details. These VOW (Virtual Office Website) listings require you to create a free account and log in to view complete information including addresses, photos, and detailed property data. Learn more about VOW requirements →
- How do saved searches work?
- When you create a saved search, we store your filter criteria (location, price range, property type, etc.). When new listings match your saved search, we'll send you an email notification so you can be among the first to know about new opportunities.
- Who should I contact about a listing?
- Call Jonathan Alphonso at 647-710-1351 or use the inquiry form on the listing. Jonathan is the web developer for this platform and a REALTOR who can help you review the property, schedule a viewing, and understand the next steps.
The Buying Process
- How do I make an offer on a power of sale property?
- The process is similar to a standard real estate purchase. Jonathan Alphonso or your buyer agent can help you prepare the offer, include the right conditions, and submit it through the proper brokerage channels. Working with someone who understands power of sale transactions is recommended.
- Can I negotiate on power of sale properties?
- Yes, you can negotiate on power of sale properties just like any other real estate transaction. However, keep in mind that lenders have specific approval processes and timelines. Offers significantly below the asking price may take longer to receive a response as they may need to go through multiple levels of approval.
- Do I need a lawyer for a power of sale purchase?
- While a lawyer is required for any real estate transaction in Ontario, it's especially important for power of sale purchases. An experienced real estate lawyer can help ensure the title is clear, review any existing liens or encumbrances, and protect your interests throughout the transaction.
Still have questions?
If you can't find the answer you're looking for, please don't hesitate to contact us.