Bondi gave a mortgage to Dante on a parcel of land (located in Ontario), which he owned. Bondi later sold the mortgaged land to Green. Green, some time later, sold the land to Jones. Jones defaulted on payment of the mortgage. If Dante forecloses on the land, and later sells it for less than the amount of the mortgage, he may then take action against Jones for the deficiency.

Question

Quizplus · Accepted Answer

In Ontario, Canada, the original mortgagor (Bondi) remains liable for the mortgage debt unless there is an assumption agreement. Subsequent purchasers like Jones are not personally liable for the deficiency unless they explicitly assumed the mortgage debt.

Bondi Gave a Mortgage to Dante on a Parcel of Land