What is the difference between power of sale and foreclosure?

Power of sale lets the lender sell a defaulted property on the authority of the mortgage contract, without a court. Foreclosure is court-supervised: a judge sets the redemption period and approves the eventual sale price. The practical difference is speed and oversight — power of sale is faster because nobody reviews it, and judicial foreclosure is slower because a court reviews all of it. Which one applies is decided by the province, not by the lender or the borrower.

Does British Columbia use power of sale?

No. British Columbia uses judicial foreclosure, which means a court runs the process from beginning to end. The lender petitions the Supreme Court of British Columbia for an Order Nisi, which grants the borrower a redemption period — usually six months. If the borrower does not redeem, the lender applies for an Order for Conduct of Sale, the property is listed on MLS®, and the court must approve the eventual price at a confirmation hearing where other buyers may appear and bid.

Is a BC foreclosure faster or slower than a power of sale?

Slower, by a wide margin. An Ontario power of sale can complete inside a couple of months once the statutory notice periods have run. A BC judicial foreclosure typically runs nine to eighteen months from the first missed payment, because the six-month redemption period and the court confirmation hearing are both built into the process. For a borrower in difficulty that time is protection. For a buyer it means a longer, less certain transaction.

Why does this matter if I am moving to BC from Ontario?

Because the assumption that a missed payment puts the lender in a position to sell is wrong here. In British Columbia the lender must commence a court petition, the borrower holds a redemption period, and the court supervises the sale. Buyers and sellers arriving from a power-of-sale province routinely work from the wrong model of how quickly a default becomes a sale — and how much protection the borrower keeps along the way.

What should a buyer know before bidding on a BC foreclosure?

That it sells as is, where is, with no representations. The lender has no knowledge of the property, so there is no Property Disclosure Statement and no Material Latent Defect disclosure. Subjects must usually be removed before the court hearing, and the deposit is forfeited if the buyer fails to close — so the inspection happens before the offer is written, not after. Budget several times the usual contingency for unknown defects, and treat lender title insurance as essential, because the chain of title may include interests the prior owner never disclosed.

Comparison guide — mortgage default

Power of Sale vs Foreclosure — and Why BC Only Has One of Them

Last reviewed August 12, 2026 by Bronson Job PREC, REALTOR®Sources: Law and Equity Act (BC), BC Supreme Court Civil Rules, Rule 21-7, Ontario Mortgages Act, R.S.O. 1990, c. M.40, s. 32How we verify

The two are not variations on one process. Power of sale lets a lender sell a defaulted property on the authority of the mortgage contract, with no judge involved. Foreclosure is run by a court from beginning to end. Which one applies is decided by the province, and British Columbia uses only the second — so the question most people arrive with, how fast can the lender sell, has a very different answer here than it does in Ontario.

Side by side

Power of sale compared with British Columbia judicial foreclosure
	Power of sale	BC foreclosure
Who authorises the sale	The mortgage contract itself. A clause in the mortgage lets the lender sell once the borrower has defaulted. No judge approves the sale and no court confirms the price.	The Supreme Court of British Columbia. The lender cannot sell on its own authority — it must petition the court, and the court runs the process from beginning to end.
Where it applies	Ontario and Newfoundland, and several US states. It is the standard remedy where it exists, because it is faster and lenders prefer it.	British Columbia uses judicial foreclosure only. Power of sale is not available here at all.
The waiting periods	Set by statute. In Ontario, the Mortgages Act (R.S.O. 1990, c. M.40, s. 32) bars notice until the default has run at least fifteen days, and bars the sale until at least thirty-five days after that notice.	Set by the court. The Order Nisi grants a redemption period — typically six months, sometimes shorter on application.
How the borrower stops it	Anyone registered on title with an interest may pay out the arrears and costs before the sale closes, and the sale stops.	The borrower may redeem during the redemption period, and after Order Nisi retains rights including reinstatement and, in many cases, accelerated redemption.
How the price is set	The open market. The lender sells, applies the proceeds to the debt, and accounts to the borrower for any surplus.	The court approves it. The property is listed on MLS® and offers go to a confirmation hearing, where competing buyers may attend and bid against the accepted offer in the room.
Typical duration	An Ontario power of sale can complete within a couple of months once the statutory notice periods have run.	Nine to eighteen months from the first missed payment to a court-confirmed sale.
What the buyer is told	Varies by province and by seller.	As is, where is. The seller is effectively the court, so there is no Property Disclosure Statement and no Material Latent Defect disclosure from a prior owner who knew the property.

The assumption that causes the trouble

People arriving from Ontario or the United States tend to carry one model with them: that a missed payment puts the lender in a position to sell. In British Columbia the lender must commence a court petition, the borrower holds a redemption period, and even after the Order Nisi the borrower keeps rights including reinstatement and, in many cases, accelerated redemption.

The court supervision is more protective of the borrower than a power-of-sale province, and it is also why BC lenders carry a slightly higher risk premium than on equivalent Ontario paper. Nine to eighteen months is the usual range from first missed payment to court-confirmed sale.

Common questions

What is the difference between power of sale and foreclosure?: Power of sale lets the lender sell a defaulted property on the authority of the mortgage contract, without a court. Foreclosure is court-supervised: a judge sets the redemption period and approves the eventual sale price. The practical difference is speed and oversight — power of sale is faster because nobody reviews it, and judicial foreclosure is slower because a court reviews all of it. Which one applies is decided by the province, not by the lender or the borrower.
Does British Columbia use power of sale?: No. British Columbia uses judicial foreclosure, which means a court runs the process from beginning to end. The lender petitions the Supreme Court of British Columbia for an Order Nisi, which grants the borrower a redemption period — usually six months. If the borrower does not redeem, the lender applies for an Order for Conduct of Sale, the property is listed on MLS®, and the court must approve the eventual price at a confirmation hearing where other buyers may appear and bid.
Is a BC foreclosure faster or slower than a power of sale?: Slower, by a wide margin. An Ontario power of sale can complete inside a couple of months once the statutory notice periods have run. A BC judicial foreclosure typically runs nine to eighteen months from the first missed payment, because the six-month redemption period and the court confirmation hearing are both built into the process. For a borrower in difficulty that time is protection. For a buyer it means a longer, less certain transaction.
Why does this matter if I am moving to BC from Ontario?: Because the assumption that a missed payment puts the lender in a position to sell is wrong here. In British Columbia the lender must commence a court petition, the borrower holds a redemption period, and the court supervises the sale. Buyers and sellers arriving from a power-of-sale province routinely work from the wrong model of how quickly a default becomes a sale — and how much protection the borrower keeps along the way.
What should a buyer know before bidding on a BC foreclosure?: That it sells as is, where is, with no representations. The lender has no knowledge of the property, so there is no Property Disclosure Statement and no Material Latent Defect disclosure. Subjects must usually be removed before the court hearing, and the deposit is forfeited if the buyer fails to close — so the inspection happens before the offer is written, not after. Budget several times the usual contingency for unknown defects, and treat lender title insurance as essential, because the chain of title may include interests the prior owner never disclosed.

Side by side

The assumption that causes the trouble

Common questions

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