Mortgages Flashcards
(10 cards)
What is a mortgage?
A bundle of proprietary rights to the lender (the mortgagee) as security for a loan
What are the formalities needed for a legal mortgage?
Deed + registration
What are the requirements under LPMP)A 1989 s1 regarding the requirements for a deed?
- Deed must be clear on the face of the document that it is intended to be a deed
- Must be validly executed
- Must be delivered
When can a mortgage be equitable?
- a failed legal mortgage (but meets the requirements for equitable mortgage
- mortgage of an equitable interest
What must happen for a defective mortgage to be a valid equitable mortgage?
LP(MP)A 1989 s2
- Needs to be in writing, contain all the agreed terms and be signed by both the mortgagor and mortgagee
What is ‘the legal date for redemption’ and what does it mean?
- The date specified on which the borrower had to repay the loan in full
- If payment was not made on the date on the mortgage deed, the borrower would forfeit the property to the lender
What is the equitable right to redeem and what does it mean?
- Allows the borrower to repay the loan at any time after the legal date for redemption has passed
- Recognises that a mortgage is a security loan and not an opportunity for the lender to gain something more
What is the ‘equity of redemption’?
The rights of the borrower (the true owner) that protect them from exploitation by the lender.
What are the rights granted under equity of redemption?
- Equitable right to redeem supplements, legal right to redeem
- No postponement or prevention of redemption
- No collateral advantages
- No unconscionable terms
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