Definition
Real estate seizure is a judicial procedure by which a creditor asks the court to order the forced sale of a property to satisfy their claim.
**Contexts**: 1. **Mortgage creditor**: can choose between taking in payment AND judicial sale 2. **Ordinary creditor**: a creditor with a judgment can have the debtor's property seized (even without a mortgage on that property) 3. **Tax authorities**: CRA and Revenu Québec can seize properties for unpaid tax debts
**Procedure in Quebec**: 1. Obtaining a judgment (or notice of exercise for mortgage creditor) 2. Filing a writ of seizure at the court office 3. Service on the borrower 4. Registration at the Land Registry 5. Legal opposition period 6. Judicial auction or private sale under court supervision 7. Distribution of proceeds: legal fees → 1st rank → 2nd rank → borrower if surplus
**Ranking of seizures**: Registered mortgages take priority over ordinary claim seizures, but legal hypothecs (construction, condo syndicate) may take priority over conventional mortgages.
**Duration and costs**: A judicial real estate seizure in Quebec can take 6-18 months and cost $5,000-25,000 in legal fees — which is why lenders often prefer taking in payment or negotiating a voluntary sale.