When a homeowner in Calgary defaults on mortgage payments, the lender can apply to the Court of King’s Bench of Alberta to begin foreclosure proceedings. In this process, the Court—not the bank—acts as the legal seller. The Court’s role is to protect the homeowner’s remaining equity and ensure the property is not sold below its fair market value. Court Of Kings Bench Listings
The Court’s Role
The Court steps in when the property is believed to be worth more than the mortgage debt. It aims to prevent a “fire sale” and ensure any return above the outstanding loan benefits the homeowner. The Court ultimately decides whether offers are acceptable and when ownership will transfer. Court Of Kings Bench Listings
Key Property Conditions
Foreclosure homes are sold very differently than traditional resale properties:
Sold strictly “as-is, where-is”
No warranties or representations from the seller
No Real Property Report or Compliance provided
No guarantees on zoning compliance, boundaries, chattels, or property condition
The owner may stop the foreclosure by bringing payments current at any time before final sale
In condominium foreclosures, buyers are responsible for acquiring all condo documentation themselves (e.g., bylaws, financials, estoppel certificates).
How Offers Work in Court-Ordered Sales
Purchasing a court-ordered foreclosure requires a specific offer process:
Offers must be unconditional — no “subject to financing,” no inspections, and no inclusions list
Standard real estate contract terms protecting buyers are removed
All offers are reviewed by the bank’s lawyer, not the Court at first
If suitable, the lawyer will set a court date to present the offer to a judge
The judge decides to accept or reject the offer
If accepted, the Court sets the final payment and possession date — typically within 30 days
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Competitive bidding can happen in the courtroom. If multiple strong offers are close in price, the Court often rejects them all and requests sealed bids for a later date to try to maximize proceeds for the owner. Court Of Kings Bench Listings
Due Diligence Responsibilities
Buyers must conduct inspections, title reviews, and research before making an offer — but nothing can be written as a condition into the contract. Court Of Kings Bench Listings
This shifts more risk onto the buyer and emphasizes the importance of professional guidance.
Who’s Involved?
A court-ordered foreclosure includes several parties:
The owner — losing the property
The lender — wants repayment
The bank’s lawyer — acts for the lender
The Court — final decision maker
A buyer and the buyer’s Realtor — the only party directly supporting the buyer’s interests
Court Of Kings Bench Listings
Court-ordered foreclosure purchases can offer access to properties not typically available on the open market. However, they include greater risk, fewer protections, and strict contract rules. Understanding the process — and preparing thoroughly — is essential.
This guide is based on the current Court of King’s Bench foreclosure process and standard purchase contract terms for judicial sales in Alberta. Court Of Kings Bench Listings
