In the world of finance, legal terms can often seem complex and daunting. Among these terms, the legal mortgage holds a special place due to its significant impact on the parties involved in various contexts.

But what exactly is a legal mortgage and how does it influence the dynamics between property owners, creditors, and other stakeholders? At Lauréat Finance, we’re here to demystify this concept and discuss the options available for managing this delicate and often overlooked situation.

What is a Legal Mortgage?

A legal mortgage is a legal right granted to a creditor to secure the repayment of a debt using real estate as collateral. Unlike a conventional mortgage, which is based on a voluntary agreement between parties, a legal mortgage can arise from various legal circumstances such as unpaid taxes, court judgments or unpaid debts to a condominium corporation. This measure allows the creditor to claim the debtor’s real estate in case of non-payment of the debt.

Types of Legal Mortgages


  • State Legal Mortgage
    This form of legal mortgage arises when taxes remain unpaid to tax authorities. The Department of Revenue or the Canada Revenue Agency (CRA) may register a legal mortgage on the debtor’s real estate to recover the unpaid amounts.
  • Legal Mortgage resulting from Judgment
    These legal mortgages generally result from a court judgment regarding unpaid debts such as credit cards or lines of credit. If a court renders a judgment in favor of the creditor, they may issue a legal mortgage on the debtor’s real estate to secure the payment of the debt.
  • Legal Mortgage from a Condominium Corporation
    In cases where a condominium owner is in default of payment (condominium fees, common expenses, or contribution to the reserve fund) for more than 30 days, the condominium corporation may register a legal mortgage with the aim of being paid.
Learn more about Legal Mortgage

How Lauréat Finance can help you?

When faced with a legal mortgage, it’s essential to understand your options and take steps to protect your financial and real estate interests. At Lauréat Finance, we understand the challenges you’re facing, and we’re here to help you find solutions.


  • Situation analysis
    Our team of experts will conduct a thorough analysis of your financial situation and the legal mortgage in question to understand your specific needs.
  • Solutions
    Based on our analysis, we will propose tailor-made solutions to manage your legal mortgage. This may include options such as debt restructuring, negotiation with creditors, or obtaining a private loan to repay the debt. Additionally, Lauréat Finance can provide loans tailored to each situation, offering a customized approach that takes into account the complexities of each case.
  • Personalized support
    Throughout the process, our team will provide you with personalized and human support and advice to help you navigate the challenges of your financial situation. Our goal? To turn an obstacle into a solution.

Legal mortgages can present significant challenges for property owners, but with the right help, they can be successfully overcome. At Lauréat Finance, we’re committed to providing you with the support you need to effectively manage your legal mortgage and regain control of your financial situation.


Don’t let legal and financial uncertainties overwhelm you. Contact the Lauréat Finance team today for a consultation and find out how we can help you with the solution that best suits your situation.

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About the author

Simon Nelson

Co-President and Mortgage Broker

Passionate about creative mortgage financing for many years, Simon establishes strategic partnerships with financial institutions. His goal is to guide clients back to financial pathways as swiftly as possible.
Accumulating over $300 million in alternative residential mortgage financing, he ensures to identify and explain the most suitable solution tailored to his clients' needs.

Contact Simon