D. MORTGAGEE’S REMEDIES i. POWER OF SALE The mortgagee’s power of sale arises upon: – default in payment – breach of covenant and a failure to remedy breach after notice is given The statutory precondition to the exercise of power of sale is that the mortgagee needs to serve notice under s 57 of the RPA upon default of the mortgagor. If a valid s 57 notice is issued but not complied with, the power of sale arises under s 58 of the RPA. Note that without serving a s 57 notice, there is no power of sale. If the proceeds do not cover all of mortgaged amounts, the mortgagee may sue the mortgagor for the balance on the personal covenant contained in the mortgage.
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Approximately 17643 words over 39 pages. Prepared in 2019.