Can a mortgagee prevent a mortgagor from redeeming the property?
Alberta, Canada
The following excerpt is from Bank of British Columbia v. Pentaco Development Corporation Ltd., 1981 CanLII 1134 (AB QB):
The answer to this contention is that since the mortgaged property has been partially disposed of, the mortgagee cannot permit the mortgagor to redeem, and the court will not permit the mortgagee to proceed on the covenant for payment for anything more than a known deficiency. It is clear from the much cited case of Lockhart v. Hardy (1846), 9 Beav. 349, 50 E.R. 378, a case decided in 1846, that where a mortgagee has obtained a final disclosure and has disposed of the mortgaged property, so that he is no longer in a position to allow a mortgagor to redeem, he will be unable to take any action to recover a deficiency.
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