Provincial Mediation Board

The mortgage foreclosure video is also available in the following languages:

Arabic, ASL, Azerbaijani, Burmese, Cantonese, Dene, Ewe, French, German, Gujarati, Hindi, Karen, Korean, Mandarin, Patois, Pidgin, Polish, Punjabi, Russian, Spanish, Swahili, Tamil, Turkish, Ukrainian, Vietnamese, Yoruba

The Land Contracts (Actions) Act, 2018 requires that the mortgagee serve on the mortgagor and the Provincial Mediation Board a notice of application for leave to commence an action at least 60 days before the hearing date.

Some basic terms and ideas:

• A "mortgage" is a debt secured by registration against a title to land.
• "Foreclosure" is an action in court to take the land because the mortgage is not being paid.

Lenders can only foreclose on land in Saskatchewan by an action in the Court of King's Bench.

A lender may seek to either take the title to the land and become the owner, or be allowed to sell the land apply the sale proceeds to the debt.

When a borrower misses payments on a debt, the lender may enforce payment by legal means of seizing the security. When the security is a mortgage on land, lenders must first give notice to the PMB that they intend to foreclose. The lender must then wait for 30 days before they can start the foreclosure process in court. These 30 days provide an opportunity for the PMB to talk to borrowers and help them consider options:

• payment of the arrears;
• sale of the property;
• quit claim the property and turn it over to the lender; or
• such other action as is within the financial means of the borrower.

Borrowers may also wish to consider:

• consulting a lawyer; or
• defending the action.

Mortgage contracts typically provide that all expenses of the lender to enforce the mortgage may be added to the mortgage debt and collected from the borrower. Lawyers bill lenders for their work to sue people and foreclose on their land. The lender pays the legal fees and adds those fees to the amount owing on the mortgage. Legal fees add to the arrears and compound the problem of catching up the mortgage payments. Early payment of mortgage arrears may avoid liability for substantial legal fees.

In Resmor Trust Company v. MacDonald, 2010 SKQB 198, the Court of King's Bench has held that financial institutions are generally not entitled to collect their initial legal fees from mortgagors, stating at paragraph 26: "The general rule is that pre-leave costs are not granted unless there is something in the evidence – i.e. the chronic offender – that would cause the Court to arrive at the conclusion that to refuse to award pre-leave costs would be inequitable."

There is substantial protection for people who wish to pay the arrears. Foreclosure actions take time. It is unlikely that a foreclosure action can be completed in less than six months from the time that the lender sends the file to a lawyer for collection, and may take much longer if the borrower makes payments and is trying to protect the property. Legal fees will be added to the arrears during the process. Those legal fees will add to the problem of catching up the arrears. Early payment of arrears reduces legal costs.

The PMB municipal tax enforcement video is also available in the following languages:

Arabic, ASL, Azerbaijani, Burmese, Cantonese, Dene, Ewe, French, German, Gujarati, Hindi, Karen, Korean, Mandarin, Patois, Pidgin, Polish, Punjabi, Russian, Spanish, Swahili, Tamil, Turkish, Ukrainian, Vietnamese and Yoruba.

Municipalities may take title to land if property taxes are not paid. Registered owners should deal directly with municipalities to pay arrears of taxes and avoid the loss of title to their land. The Provincial Mediation Board (PMB) has a limited role in municipal tax enforcement. Below you will find information about the limited role of the PMB.

The PMB does not have a role:

• in disputes about assessment;
• in determining the amount of taxes owing; or
• before the municipality asks for the PMB's consent.

The role of the PMB is:

1. Receive the Form 5 and property title, and date stamp and review them for accuracy (municipality lien must be at least 1-year-old). Payment will then be processed.
2. After payment is taken the file is numbered and entered into the tax file register.
3. The first letter is sent to the registered owner, giving them 30 days to respond.
   a. If no response is received by PMB for letter, and no payment arrangement is made, one of two things will occur:
   

   First, if no interest holder or liens are on title, the file will be put forward to the board for consent with a current statement included.

   Second, if there is an interest holder on title, PMB will send an interest holder letter to provide the interest holder with an opportunity to protect their interest. They are given 30 days to respond. If the interest holder responds, the expectation is that they will pay their property taxes and then may proceed with legal action, if required. If the interest holder pays the taxes, it is diarized for 60 days, or so, and PMB will request a new statement to inquire if paid in full.

   NOTE: If the interest holder chooses not to protect their interest, and/or do not respond, the file will go forward to the board for consent. A current statement will be attached to the file when presented to the board.

4. If the registered owner responds to the first letter, PMB will work with the registered owner to set up a monthly payment plan. PMB will send a letter to confirm the payment plan, monitor the file, and request an updated statement from the municipality to ensure the arrangement is kept, every three to six months. This process can take years of monitoring. Once PMB receives confirmation from the municipality that the account is paid in full, PMB will close the file.
5. If the payment plan is not kept, PMB will send a warning letter to the registered owner.
6. If no payments or contact is received from the registered owner after the deadlines have passed for both letters, the file will be put forward to the board for consent.
7. If required, an interest holder letter will be sent to the appropriate interest holders on title [see point 3].
8. Once a file is closed in PMB by consent granted by the board, it is now in the municipality's hands and they start the process for Form G. If the registered owner calls in to discuss the file at this stage, they are directed to contact the municipality with any questions, as the municipality is now in charge of the file.

NOTE: All communication on tax enforcement files are dated and noted as to the context of the conversation. All ledgers are held on file along with any other correspondence received from any source.

Registered owners must resolve any issue of property assessment or the amount of taxes owing directly with the municipality.

A municipality may take the title to land without consent from the PMB if:

• the assessed value is less than $17,500;
• the land is unoccupied; and
• no payment has been made on account of taxes for two years.

If consent from the PMB is required, the role of the PMB is to provide the registered owner with one last opportunity to pay the taxes. The PMB will consent to the municipality taking title if taxes remain unpaid, or if the registered owner defaults on payment arrangements.

The PMB recognizes that municipalities are entitled to collect taxes and that municipalities need the money to provide municipal services. The PMB will withhold its consent only so long as the registered owner has made a reasonable arrangement for the payment of taxes within a reasonable time and honours that arrangement.

The PMB will issue consent if the registered owner fails to respond to letters or any other communications from the PMB. When the registered owner has agreed to an arrangement for payment of taxes, the PMB will consent if the registered owner fails to comply with the arrangement without providing an explanation satisfactory to the PMB.

Registered owners need to keep in touch with the municipality about the payment of taxes and about any problems with payments. Registered owners need to keep the PMB informed of any significant change in circumstances. Problems can be avoided by good communication.

For more information on tax enforcement procedures, see the Tax Enforcement Procedure Manual.

For more information regarding the phases of tax enforcement, see the Tax Enforcement Flowchart.

Find applicable PMB Forms.

The PMB has the power to delay proceedings to evict some tenants. This section will provide you with information about the PMB's power.

The Landlord and Tenant Act governs leases generally, whether agricultural, commercial or otherwise. The Act does not apply to residential leases governed by The Residential Tenancies Act, 2006.

The Agricultural Leaseholds Act provides some additional rights for tenants in agricultural leases to remove crops after the end of the term if harvest is delayed by weather or other reason. Under sections 5 and 6 of that Act, the PMB has the power to hear disputes and make orders permitting re-entry for completion of harvesting.

Decisions of the PMB are published by CanLII.

The Court of King's Bench has general jurisdiction under The Landlord and Tenant Act to make orders declaring leases to be terminated, whether by expiration or by reason of breach, and to grant to the landlord an order for possession.

Under section 14 of The Provincial Mediation Board Act, the PMB has the power to delay applications for possession and to delay enforcement of orders for possession. The powers of the PMB in subsection (1) are:

Power to prohibit proceedings by landlord

14(1) The Board may at any time and from time to time, of its own motion or upon application by any person, by order, subject to such terms and conditions as the board deems fit:

(a) prohibit any or all proceedings under The Landlord and Tenant Act during a period of time stated in the order;

(b) prohibit any action by a landlord for the recovery of possession of land from a tenant during a period of time stated in the order;

(c) prohibit the execution by a sheriff of any writ of possession during a period of time stated in the order;

where in its opinion serious hardship to the tenant or his family would otherwise ensue.

The PMB has interpreted its role as one of providing time for an orderly end to a tenancy. The Court of King's Bench has jurisdiction to deal with the merits of the matter and determine that a lease has expired or that a tenant has breached a lease. The Court will determine if the landlord is entitled to a writ of possession. Nevertheless, if the tenant will suffer serious hardship as a result of the immediate end of a lease, the Board has jurisdiction to provide "a period of time" to the tenant if that will avoid serious hardship to the tenant or at least mitigate the serious hardship. The Board does not have jurisdiction to deal with the merits of an application for possession.

There are no prescribed forms for applications under section 14. An application can be made by correspondence, preferably delivered to the Board by email to PMB@gov.sk.ca. Tenants who apply to the PMB for relief are expected to assist the PMB by addressing the following issues:

1. Will "serious hardship to the tenant" ensue if the lease is terminated?
2. Can the serious hardship be avoided by delaying the eviction?
3. What period of time is necessary to avoid serious hardship to the tenant?

If the parties dispute the facts, evidence will be required. Parties are encouraged to:

• communicate openly;
• resolve their disputes directly; and
• contact the board to discuss procedure should an application be necessary.

While the Board is contacted a few times annually about section 14 issues, in most cases the parties find a solution without the need for the Board to conduct a hearing or make an order.

Applications are commonly heard after the court has made its decision on the landlord's right to possession. If the landlord is not entitled to possession, there is nothing for the Board to delay. If the Court finds that the landlord is entitled to possession, the Board will ask that the court to withhold enforcement of a writ of possession pending a decision of the Board. When the tenant acknowledges the landlord's right of possession, it is appropriate for the Board to hear the application before the Court hears the landlord's application for a possession order.

For expediency, members of the Board will take calls and provide basic information about the process and powers of the Board. Obviously it is not desirable for an adjudicator to discuss a matter with one party in the absence of the other. If you communicate with the Board, please send a copy of the message to the other party, so that both parties are aware of all information provided to the Board and have an opportunity to respond. Should a conference call with the Board be desirable, please make the request by email and suggest a convenient time. Conference calls have often helped the parties through the process and enabled them to find their own solution.

The Provincial Mediation Board Act

The Tax Enforcement Act

The Land Contracts (Actions) Act, 2018

The Land Contracts (Actions) Regulations

The Landlord and Tenant Act