Foreclosure involves lengthy legal proceedings taken in the Court of Queen’s Bench and is governed by several statutes, including The Land Contracts (Actions) Act (the LCAA). The LCAA is consumer protection legislation intended to protect borrowers by requiring lenders to obtain leave of the court before starting foreclosure. The protection is provided as time: time to bring the mortgage up to date, refinance, or sell the property before foreclosure or judicial sale or, if that is not possible, time to find alternative accommodation. The LCAA is 70 year old legislation, having been enacted in 1943. This Final Report considers the steps required by the LCAA for non-farm land mortgages and recommends reforms to better protect borrowers in current conditions.
The Land Contracts Act is meant to protect consumers by requiring leave of the court before a mortgagee may start foreclosure proceedings. The Commission reviews the steps required by the Act for residential mortgages and considers whether they remain necessary or desirable. It suggests approaches that might be taken for reform of the Act and invites responses.
These proposals are meant to act as a supplement to The Personal Property Security Act that was enacted in 1980. They are designed to enhance consumer protection in credit transactions.
This Report suggests that consumer credit is on the rise in the province and will continue to grow. As a result, the complex law surrounding consumer credit should be reformed. Creditor education is key to reforming the laws to ensure full disclosure and fair treatment.