How To Lose Your Mortgage Security In 24 Months!

The British Columbia Court of Appeal (BCCA) recently released its first decision considering the application of BC's new limitations statute in the context of security enforcement generally and foreclosure practice specifically. The new limitations statute reduced the limitation period for contractual claims and security enforcement from six years to two years, and imposed a new section that that two year period applies to security enforcement and runs from the first day "the right to enforce the security arises." 

Leatherman v. 0969708 BC Ltd., 2018 BCCA 33 highlights the potential consequence for lenders that do not act promptly within that limitation period to commence foreclosure proceedings or take other actions to realize on their security.