InstaFund Mortgage Management Corp. v Li, 2024 BCSC 1512 (CanLII)

In a recent decision of the BC Supreme Court, Justice A. Saunders clarified a key aspect of foreclosure proceedings. InstaFund Mortgage Management Corp. v Li, 2024 BCSC 1512 confirms that a chargeholder with an unproven claim to a property can obtain an order for conduct of sale following Order Nisi.

Prior to the decision, there was some uncertainty in the law as to whether a 'mere chargeholder' with unproven claim could be granted conduct of sale, or if this right was restricted to parties with an interest in the land.

Background:

Crowe MacKay & Company Ltd. ("CMC") is the Trustee in bankruptcy of Xiao Bo Li. Ms. Li's son, Clinton Li, and Ms. Li's associate Danny Ting Chug Ma are the registered owners of the disputed property, 2092 West 57^th Avenue, Vancouver, BC. Prior to the foreclosure proceedings, CMC brought a fraudulent preference claim against Mr. Li and Mr. Ma, alleging funds owed to them in their capacity as Trustee were used to purchase the West 57^th