A power of sale is a legal provision that allows a lender to sell a property when the borrower defaults on their mortgage, bypassing the need for court intervention.
This process enables the lender to recover the outstanding debt more swiftly compared to foreclosure proceedings. The lender is obligated to sell the property at fair market value, using the proceeds to cover the mortgage debt, with any surplus returned to the borrower.
This method is commonly employed in provinces like Ontario, PEI, Newfoundland and Labrador, and New Brunswick.