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Debra, Lawyer
Category: Canada Law
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Experience:  Lawyer
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HI How does the bank regulate the price of a house in Ontario

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HI How does the bank regulate the price of a house in Ontario Canada which is being sold under power of sale.
Thank you for your question. My goal is to provide you with the best possible answer.

To achieve that goal it may be that I will find that I need to gather further information from you. As well, it's quite possible that you may feel the need to ask me additional questions for further clarification.

But, please understand that as a careful lawyer I will always give you an honest answer even if the answer is sometimes not what you were hoping for.

Thank you for requesting me.

The bank has to consider what the true market value of the property is.

To do this they have to get two appraisals done first. Then they set the listing price at 5 - 10% above that average of the two appraisals.
Customer: replied 3 years ago.

If the house does not sell. When can the Bank lower the price?

The bank can keep lower it until it does.

The bank does not have to keep it on the market. It has the right to sell it quickly but has to show that it tried to get the true market price.

That is not the same as market value that. Market value is what a house will sell for when the seller is not under duress. True Market value is lower as the seller is under duress to sell.
Customer: replied 3 years ago.

Therfore it is up to the Banks discretion, there is no time limit when the fare market value price must be lowered.

There is no time limit.

But they have the right to sell it quickly.

And the two appraisals should be accurate enough to help them do that.
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