This section is from the book "The Law Of Mortgages Of Real Estate", by John Delatre Falconbridge. Also available from Amazon: Real Estate Law.
It is further provided by the Manitoba statute, s. 121A, as follows (m):
121A. Whenever a mortgage heretofore made, purporting to be made in pursuance of The Real Property Act, contains a power of sale which provides for a sale without notice, the mortgagee, his heirs, executors, administrators, successors or assigns, shall be held to have been always entitled to take proceedings to sell under the same according to the tenor of the power, as if the district registrar had at the time of such sale ordered the same to take place under section 119 of the said Act, provided default has continued under said mortgage for a period of ten years or more at the date of such sale; provided, however, that no purchaser under such power of sale shall be registered as owner unless the registrar-general shall approve of the sale; and all such sales, in cases where certificates of title have already issued, are hereby confirmed and declared valid. This amendment shall not affect pending litigation or mortgages which have heretofore been the subject matter of any action or proceeding in court.
It has been held in Alberta that where a mortgagee applies to the registrar for a direction or sale, the registrar is entitled to require the production of (1) an affidavit of default and continued default, (2) an affidavit of value. (3) a statement of the amount due under the mortgage, with an estimate of the cost of sale proceedings, taxes, etc., (4) a reserve bid form, and (5) instructions to the auctioneer, in order (1) that he may satisfy himself that the mortgagee is entitled to sell (2) (3) and (4) that he may settle a reserve bid, and (5) that he may be sure that the sale will be conducted in accordance with the conditions (n).
(m) This section was added by 1914, c. 90, s. 6.
The Saskatchewan statute, s. 110, provides:
110.- (1) Such mortgagee or encumbrancee may make and execute all such instruments as shall be necessary for the sale and enjoyment of the premises; and such instruments shall be as valid and effectual as if the mortgagor or encumbrancer and other persons aforesaid had made, done or executed the same.
(2) The receipt in writing of the mortgagee or encumbrancee shall be a sufficient discharge to the purchaser of such land, estate or interest or any portion thereof for so much of his purchase money as may thereby be expressed to be received, and no such person shall be answerable for the loss, misapplication or nonapplication or be obliged to see to the application of the purchase money by him paid, nor shall he be obliged to enquire as to the fact of any default or notice having been made or given as aforesaid or how the purchase money to arise from the sale of any such land, estate or interest shall be applied.
(3) Such purchase money shall be applied: firstly, in payment of the expenses occasioned by such sale; secondly, in payment of the moneys which may then be due or owing to the mortgagee or encumbrancee; thirdly, in payment of the subsequent mortgages, encumbrances or liens, if any, in the order of their priority; and fourthly, the surplus, if any, shall be paid to the owner, mortgagor or encumbrancer, as the case may be.
The Manitoba and Alberta statutes (o) are to the same effect, except that the Alberta statute has the following provision in place of sub-s. 3:
Such purchase money shall be paid into the Supreme Court in the judicial district in which the land is situate and there shall be paid thereout upon the request of the mortgagee:-
(a) The costs as taxed by the registrar;
(b) The moneys due or owing to the mortgagee or encumbrancee and proved before the registrar;
and when such payments are duly made the balance, if any, remaining in court shall be paid out on order of a judge in payment of the subsequent mortgages, encumbrances or liens, if any, in order of their priority, and the balance, if any, to the owner or beneficial owner as his interest may appear.
(n) Re Sun Life Assurance Co. and Widmer, 1916, 26 D.L.R. 147. (o) Man. s. 120; Alta. s. 62a, sub-ss. 7 and 8, as enacted by 1915, c. 3, s. 2, and amended by 1917, c. 3, s. 40.
Notwithstanding the provisions for payment of the subsequent mortgages, encumbrances and liens in order of their priority, subsequent execution creditors are to be paid pari passu inter se (p), provided no encumbrance intervenes between two groups of executions. If an encumbrance so intervenes, the execution creditors prior to the encumbrance are entitled to payment in priority to those subsequent to the encumbrance (q).
After an abortive auction sale the registrar may ratify a private sale which has been made without notice and without authority if he is satisfied that the mortgagor has no beneficial interest in the lands (r), but where the land has been sold at an auction sale, an agreement has been signed and the deposit paid but the sale has not been carried out, the registrar has no power to direct a resale or to deal further with the land except under the direction of the court (s).
The Saskatchewan statute s. 111, provides:
111. Upon the registration of any instrument executed by a mortgagee or encumbrancee for the purpose, of such sale as aforesaid the estate or interest of the owner of the land mortgaged or encumbered shall pass to and be vested in the purchaser freed and discharged from all liability on account of such mortgage and of any mortgage, lien, charge or encumbrance created by any instrument registered subsequent thereto and the purchaser shall be entitled to receive a certificate of title for the same.
The Manitoba and Alberta statutes (t) are to the same effect.
(p) Under the Creditors Relief Ordinance. Thompson v. Berg-land, 1910, 3 S.L.R. 470.
(m) This section was added to the statute by 1914, c. 90, s. 6. (q) Edmonton Mortgage Co. v. Gross, 1911, 3 A.L.R. 500.
(r) Re Sale of Mortgaged Premises by Private Contract, 1914, 5 W.W.R. 1328 (Sask.).
(s) Re Duty of Registrar in Mortgage Proceedings, [1917] 1 W.W.R. 331 (Sask.).
(t) Man. s. 121; Alta. s. 62a, sub-s. 9, as enacted by 1915, c. 3, s. 2.
 
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