Sale under judicial authority
The sale under judicial authority is a mortgage remedy similar to the sale by the creditor, with the difference that it also applies to consumer property.
Section 2791 of the Civil Code of Québec states:
“A sale takes place under judicial authority where the court designates the person who will proceed with it, fixes the conditions and charges of the sale, indicates whether it may be made by agreement, a call for tenders or public auction and, if it considers it expedient, after enquiring as to the value of the property, fixes the upset price.”
If the proceeds of the sale are insufficient, the creditor retains a personal recourse against the debtor. However, if there is a surplus, the creditor must pay it back to the debtor.
► DUTIES AND OBLIGATIONS OF THE BROKER
Regardless of the method chosen by the mortgage creditor, it is possible to sign a brokerage contract for the sale of the property. The creditor who sells is acting on behalf of the owner, so it is really the debtor who is selling the immovable.
In practice, it is often a bailiff who is responsible for the sale and who retains the services of a real estate broker.
For more information, read the article The register of sales under judicial authority – A new tool for disseminating and selling an immovable.
