The High Profile Cannabis Corp (Defendant) purchased industrial land for $890,000 in 2019, financed by a Vendor Take Back Mortgage.
The mortgage, amended in 2021, had a balance of $347,000 with 5% interest, maturing in 2022.
The Defendant defaulted, and the Plaintiff initiated foreclosure proceedings in late 2022.
Dispute:
Significant discrepancies in property valuations arose:
Plaintiff’s appraiser: Market value of $375,000; forced sale value of $320,000.
Defendant’s appraiser: Market value of $1,900,000; forced sale value of $1,650,000.
Municipal assessment: $658,910 (2022).
Court’s Considerations:
The Defendant’s appraiser’s comparables were critiqued but deemed not wholly unreliable.
The Court emphasized ensuring a fair market process while considering factors like the mortgage maturity, interest rate, and the Defendant’s inability to redeem the property.
Decision:
Redemption period set at one day from service of the Order.
The property will be listed for 90 days at $1,900,000, reflecting the Defendant’s appraised market value.
A realtor selected by the Plaintiff will handle the listing, with a commission cap of 3%.
