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24 No Personal Liability If New Purchaser Approved By Lender

In This Volume

24 (1) Despite section 21(1), if a mortgagee under a residential mortgage or a vendor under a residential agreement for sale gives written approval under this section to a person to whom

  • (a) the mortgagor transfers an estate in fee simple in land subject to the mortgage, or
  • (b) the purchaser transfers his or her interest in the agreement for sale,
  • that mortgagor or purchaser ceases to be liable on all covenants contained in the mortgage or agreement for sale.
  • (2) A mortgagor or purchaser under an agreement for sale who wishes to obtain approval for the purposes of subsection (1) must, not later than 3 months after the transfer, make a request to the mortgagee or vendor.
  • (3) The mortgagee or vendor may require the person seeking approval to provide
  • (a) reasonable financial information respecting the transferee or proposed transferee, and
  • (b) a reasonable fee to cover the costs of obtaining a credit report and handling costs.
  • (4) A mortgagee or vendor under an agreement for sale must not unreasonably refuse to grant his or her approval under this section.
  • (5) If a mortgagee or vendor under an agreement for sale fails to give approval under this section, the mortgagor or purchaser may, by way of petition proceeding or, if Rule 17-1 of the Supreme Court Civil Rules applies, a requisition proceeding, apply to the Supreme Court, and the court may, if it finds that the approval has been unreasonably withheld, grant the approval, and that approval is valid as though it were given by the mortgagee or vendor.

1979-340-20.3; 1988-42-7, proclaimed effective December 1, 1988 (B.C. Reg. 411/88); 2010-6-77, effective July 1, 2010.

CROSS REFERENCES AND OTHER SOURCES OF INFORMATION

See the discussion under “Cross References and Other Sources of Information” for s. 23 of the Act.