Ace the Ontario Mortgage Agent Exam 2025 – Unlock Your Future in Finance!

In a power of sale scenario, the lender is the entity that obtains the remaining money after the sale of the property. When a borrower defaults on their mortgage, the lender has the legal right to initiate a power of sale process. This allows the lender to sell the property to recover the outstanding mortgage balance owed by the borrower.

Once the property is sold, the proceeds from the sale are first used to cover any outstanding debt that remains, including the mortgage amount, legal fees, and any other costs associated with the sale. If there are funds left over after settling these debts, those excess proceeds would be given to the borrower. Therefore, in this context, the lender being the recipient of the money reflects their position as the primary party owed funds from the mortgage agreement.

Other entities, such as the borrower, government, or real estate agent, do not receive the remaining sale proceeds in this scenario. The borrower may receive surplus funds only after the lender's claims are satisfied, while the government typically operates through taxes rather than being a direct party in the sale proceedings. The real estate agent may receive a commission from the sale, but they do not get the remaining funds from the property sale itself.

Ask an Examzify Tutor