Can a Lender Foreclose on My Farm in Alberta?
This answer covers the law of Alberta.
Yes, a lender can foreclose on farm land in Alberta, but it has to go through a court action rather than a private power of sale. Foreclosure is governed by Part 5 of the Law of Property Act and the Alberta Rules of Court.
For farm land, the redemption period fixed in the order is one year from the date the order is granted, compared with 6 months for other land. The Court can decrease or extend that period, and for farm land it may consider whether the missed payments were caused by hail, frost, drought, agricultural pests or other conditions beyond your control. The redemption period does not apply to an order you have consented to.
Whether these protections apply to you depends on who signed the mortgage, what type of mortgage it is and whether you consented to the order. A corporate mortgagor does not get the statutory redemption period, and certain insured mortgages are also excluded. Federal farm debt rules and mediation options may also matter, so it is worth confirming your position with a lawyer early.
Key takeaways
- A lender enforcing a mortgage on farm land must bring a court action, and the Act does not give a separate non-court power of sale.
- The redemption period for farm land is one year from the date the order is granted, and the Court can decrease or extend it.
- For farm land, the Court may consider whether missed payments were caused by hail, frost, drought, agricultural pests or other conditions beyond your control.
- Protections can change if a corporation gave the mortgage, the mortgage is of a type the Act excludes, or you consented to the order, so get advice on your own situation.