The applicant mortgagee sought an order setting aside tenancy agreements entered into by the mortgagor with tenants at a residential property and sought leave to issue a writ of possession.
The court dismissed the application against two respondents (upstairs tenants) who had established a legitimate tenancy predating the mortgagor's default.
With respect to unnamed basement tenants, the court found insufficient evidence to satisfy the three-part test under section 52 of the Mortgages Act for setting aside a tenancy agreement.
The court declined to grant a writ of possession as section 48 of the Mortgages Act prohibits possession of rental units except in accordance with the Residential Tenancies Act.
Instead, the court issued an order requiring the mortgagor and basement tenants to provide full particulars of the tenancy agreement by October 31, 2025, allowing the applicant to renew its application if appropriate.
The court awarded costs to the upstairs tenants.
