| Some time ago we sent out an email regarding foreclosures and we received questions on that topic. Before we start a new series of emails on mortgage and title fraud, we will address those questions. The two most frequently asked questions were as follows:
Q: What happens if the owner/tenant remains in the home on the possession date? A: The main risk associated with this is delayed possession. You cannot legally remove the owner yourself, your lawyer must apply to the court for a “Writ of Possession” which requires extra time and costs. A Writ of Possession gives an authorized court bailiff the power to forcibly evict a tenant who refuses to leave after eviction. And an owner who is expecting to be forcibly removed may vandalize the property before leaving! Q: What are the risks with respect to non-resident sellers? A: The main risk is with respect to taxes – the buyer will usually indemnity the seller (ie., the bank) for unpaid capital gains taxes, the speculation and vacancy tax, as well as the Empty Homes Tax (where applicable). This means that the buyer is responsible for unpaid taxes of a non-resident seller in foreclosure sales. The bank may not know where the owner currently resides, what the use of the property was, whether it was vacant and/or whether capital gains applies. The buyer takes the risk in this regard and will need to undertake certain due diligence to satisfy themselves and move forward. We are still working on our series of emails on real estate fraud. Please continue to reach out with any questions you may have related to mortgage/title fraud. Thanks for the support. |