What protections do I give up when I buy a property through power of sale instead of a normal purchase?

Ontario recognizes two different remedies when a mortgage goes into default: power of sale and foreclosure. Power of sale, which runs under the Mortgages Act, is by far the more common route here, and it changes what you get as a buyer compared with an ordinary resale purchase. The seller is the mortgage lender exercising its security, not the homeowner, and the lender was never living in the property and generally knows little about its history. Because of that, the lender typically makes no representations or warranties about the property's condition, and the deal is usually structured as a straightforward "as is" sale.

You also give up the comfort of a cooperative seller - there is no one to answer questions about a leaky roof, past renovations, or why an appliance stopped working, and the transaction moves largely on your own due diligence. Because the price often reflects this reduced protection, many buyers accept the trade-off, but it means budgeting for inspection, title, and legal review that a conventional purchase might not require, and treating any information you do receive as unverified rather than guaranteed.