Legal Mortgage file targeting the Jovalco property

Legal Mortgage file targeting the Jovalco property

According to the Land Registry, a legal mortgage has been filed against the Jovalco produits forestiers property (Forest Service) located at 2460 Route 148 in Litchfield, regarding the Law on the price of Energy. The creditor, Hydro-Québec, whose head office is located on René Lévesque Boulevard in Montreal, filed to the sum of $68, 896.

What is a legal mortgage?
A legal Mortgage is a legal document that guarantees a claim of a builder and renovator arising from the work they do in a building. This real estate right is attached to and affects the building where the work was carried out for the added value brought to said building by the construction or renovation. The receivables are secured by the mortgage since it ultimately allows the property on which the mortgage is registered to be sold in court if the sum remains unpaid. The legal sale price is then allocated in whole or in part from the claim filed by the builder, renovator or material supplier.

A mortgage is a real right registered by the Registry Office, it will remain in place even if the building on which the mortgage is located is sold once or several times. This is called the “droit de suite”.

The legal mortgage has priority over a conventional mortgage. It is therefore likely to cause a major obstacle between a lender and a financial institution since it affects the guarantee of the institution.

Source: Réseau juridique du Québec