Power of Sale

Power of Sale in Toronto not quite the same as Foreclosure in U.S.

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In Toronto, 50% of real estate sales volume in 2009 January comparing of which in 2008 January. There were 26 showings was registered in one day on this "power of sale" rowhouse on Adelaide/Bathurst, Toronto, and one registered offer is presented this morning.
What does it tell you?
Buyers are out there and on the sideline waiting for best "deal" ever. There are actually lots of qualify buyers in the market and waiting for good deal comes out in the market as the economy are continuing to tank.
Buyers! Buyers! Please pay attention!!! Don't over excited by the term "Power of Sale"! It is not quite the same as the Foreclosure in U.S.
The Vendor, in most case is the bank or trust company, of Power of Sale has the fiduciary duty to sell the house at market value being appraised by a 3rd party. It is pure business, no emotion involve in the transaction. There is a great chance of getting a fantastic deal.
But Buyers please be advised that in this situation you have to understand all the CONDITIONS under Power of Sale. Please read Schedule B, C, D, E and F!!!!!! There are conditions such as original owner can redeem the house before closing. The Bricks or Sears Department Store can repossess appliances if they were not paid off by the original owner. The Vendor does not warrant the house, it is sold AS IS!!
In case of multiple offer presentation, buyer might end up paying over the market value. Be extra careful when dealing with Power of Sale.

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