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Frequently
Asked Questions |
How do I get a Home Quarter
Protection Exclusion Order?
A creditor and a borrower must co-apply to the Farm Land
Security Board, and the Board must agree that waiving the protection is reasonable.
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How long will it take to process a co-application?
It depends on the complexity of the situation. The usual
time is five to eight working days. Urgent co-applications can be prioritized by calling
the Board office (306) 787-5147.
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May I apply by fax?
Yes, the fax number is (306) 787-8599.
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What documentation is required with a co-application?
Refer to the last page of the co-application
form
- one completed copy of parts I and II of the Co-application
to Waive Home Quarter Protection, signed by the mortgagor(s) and the mortgagee;
- one photocopy of the signed mortgage and any mortgage
amending agreements;
- one copy of both sides of the title to the home quarter;
- one copy of the loan approval for Farm Credit Corporation
mortgages (and for other mortgages, if provided);
- more complicated financing situations should consider
including a farm financial statement or financial plan, indicating repayment ability.
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Do I have
to exclude Home Quarter protection to purchase the Home Quarter?
No. Section 44(12.3) of the Act excludes all
mortgages solely to purchase the homestead.
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Do acreages, rural residences and small holdings require an
Exclusion Order?
In some cases. Homesteads of less than a quarter section
which are not subject to a Board Class Exclusion Order will
require a co-application.
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Do I have to exclude Home Quarter protection to purchase the
Home Quarter and additional farm land?
See the Board’s Class Exclusion Order for Solely Farm
Land Purchase mortgages.
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Do I have to exclude Home Quarter Protection when the seller
(vendor) is providing the financing?
Section 43 of the Act excludes mortgages financed by
a vendor who is an individual; or that is a corporation with fewer than 10 shareholders.
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Do I have to exclude Home Quarter protection when making
improvements to the Home Quarter?
The Act, section 44(12.3) excludes mortgages solely
for the purpose of new construction or improvements on the homestead. The creditor must
monitor how the funds lent for improvements are spent to ensure that no non-improvement
purchases or other uses of the funds occur.
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Are Home Quarters titled to family farm corporations?
The Board is not aware of a court decision on this
question. However, because parts of the Act apply to farm corporations, many
lenders and law offices apply for an Exclusion Order in this circumstances.
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Is a waiver required when the mortgage loan is to pay out interim
construction financing, credit card or other?
Yes. When paying out a an interim loan or credit card debt
originally for construction purposes, the mortgage is for refinancing - not construction.
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What is a
restricted Order?
Restricted orders limit the application of the Exclusion
Order. The most common restriction deals with mortgages that are not loan-specific.
Non-loan-specific mortgages may be used to secure other or future debt with the same
creditor. The order is drafted to limit the order to the debt described in the
co-application.
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