Statutes – Interpretation – Land Contracts (Actions) Act, 2018, Section 7, Mortgages – Foreclosure – Leave to Commence Action
The applicant mortgagee applied for leave to commence an action for foreclosure and related relief. The proposed plaintiff deposed that the proposed defendants defaulted on their obligations under a mortgage of their property that secured a loan of $344,470. They made their last payment in June 2019, and a year later, they owed arrears of $22,000. The material filed by the applicant contained a request for leave of the court to waive the requirement under s. 7 of The Land Contracts (Actions) Act, 2018 for further updated affidavits regarding the state of the respondents’ account. The applicant advised that, should the respondents make any further payments under the mortgage, the applicant would file a certificate of lawyer describing the amounts paid. Counsel for the applicants argued that s. 7 of the Act applied only to the initial court appearance.
HELD: The court granted the application for leave to commence an action for foreclosure but dismissed the leave application for s. 7 of the Act to be waived. The court interpreted s. 7 to mean that when seeking leave to commence, proposed plaintiffs are obligated to provide “updated information regarding the state of the defendant’s account with the plaintiff” every 30 days until leave is granted.