REAL ESTATE CONVEYANCING AND HIGH-RATIO, INSURED MORTGAGES

Paul McLaughlin, Acting Practice Advisor

Effective August 1, 2004, the Law of Property Act was amended to allow mortgage lenders to recover deficiency judgments on “high-ratio” mortgages insured by CMHC or any other insurer licensed to offer mortgage insurance in Alberta.

Click here for the amendment. 

Click here for the new regulation that defines “high ratio mortgage”.

Click here for Sonny Mirth’s article in the July 2004 Law Matters.

To avoid allegations by clients that they did not understand the personal responsibility risks inherent in such mortgages, the lawyers should explain the concerns in detail.  The explanation should come from the lawyer, not the conveyancing assistant.  The explanation should be evidenced by use of the appropriate forms and reporting letter paragraphs set out below (amended to take the August 1, 2004 changes into account).  This material is result of efforts by the Canadian Bar Association Real Property Sections in both Edmonton and Calgary, to whom we express thanks.

Last Update: July 30, 2004
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