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 legal process in Ontario where a lender can sell a property without court approval when a borrower defaults on their mortgage. These properties are often sold below market value as lenders are motivated to recover their loans quickly.
- 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 We also remove sold or withdrawn listings to ensure you're always seeing current, active opportunities.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.
- How do I contact the listing agent?
- Each listing includes a contact form that allows you to send an inquiry directly through our platform. Your message will be forwarded to our team who can assist you in connecting with the appropriate contacts for the property.
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. You'll work with a real estate agent to submit an offer through the listing agent. It's recommended to work with a buyer's agent who has experience with power of sale transactions.
- 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.