Appeal concerning whether a purchaser of residential rental premises from a mortgagee exercising a power of sale takes title subject to an existing tenancy agreement.
The court held that ss. 46 and 47 of the Mortgages Act were enacted to protect tenants from disruption caused by mortgage default and apply to a purchaser who obtains title through a power of sale transaction.
As a deemed landlord, the purchaser was bound by the tenant's lease, and those protections prevailed over any conflicting effect of s. 44 of the Land Titles Act.
The appeal was allowed, the Divisional Court order was set aside, and the matter was remitted for determination of the remaining grounds of appeal.
