Property and Mortgages Essay Example | Topics and Well Written Essays - 1000 words

Property and Mortgages - Essay ExampleThe prevalent rule is that the interest reverts to the borrower upon completion of refinancing the owe. The history of mortgages dates back to the seventeenth century. Throughout this period, doctrines of equity have been utilize to protect mortgagors from mortgagees exploitations. Statutory regulations have however recently been formulated to ensure mortgagors protection. The courts have similarly join the efforts. The scope of mortgages covers any venture in which get to is used, and is offered on any interest on cut down as well as other properties other than land. This paper seeks to investigate the statement that mortgages are a suppression of truth and a suggestion of falsehood, mortgage destroys our economy. The paper will explore the legal aspects of mortgages with the calculate of supporting the statement. Difference amid legal and equitable mortgages The major difference between equitable and legal mortgage is the level of form ality that is involved on the process of creating the mortgage. A legal mortgage requires unbending formalities that include a written contr typify. All terms of the mortgage agreement are stipulated and the papers signed. Equitable mortgages on the other hand involve deposition of title to the subject estate without devising formal commitments. Legal mortgages are executable within the strict interpretation of the law of prop act (1925) and must be under deed. This means that the mortgage binds any interest in the land, both cowcatcher and transferred. An equitable mortgage is however informal and do not bind a purchaser in good faith who takes the topographic point for value without the knowledge of existence of the mortgage (Slorash and Ellis, 2007, 121). Another difference between a legal mortgage and an equitable mortgage is the transferability of interest in the subject land. While retention in the piece of land is transferred to the mortgagee under a legal mortgage, on ly possession passes in an equitable mortgage and the mortgagee has to seek judicial intervention for transfer of property in the land in guinea pig of a defaulted refinancing (Sharma, 2010, 212). Rights of the mortgagee The mortgage agreement creates a number of mightys to the mortgagee. The first set that a mortgagee acquires is the right over the promise to pay (Williams, 2011, 90). This right is enforceable against the mortgagee or any subsequent owner of the land subject to the law of property act (2007) and the interpretation of the case of Nefson Diocesan trust board v Hamilton 1926 NZLR 342. The mortgagee also has a right to foreclosure and to gain possession of the land if the mortgagor defaults in payments after a notice after a notice (Williams, 2011, 92). in that respect is also the right to put the piece of land under receivership or even to sell the property as was held in the case of Alliance &Leicester plc v Slayford 2000 EGCS 113. The same case provides legal g round for get against the mortgagors covenant (Pawlowski and Brown, 2002, 177). Rights of the mortgagor The mortgagors rights include the right to redeem the mortgage subject to the terms of the mortgage agreement as was illustrated in the case of Jones v Morgan (2001) (Dixon, 2011, 380). The redemption right can be enforced equitably or legally. Further, the mortgagor is entitled to right of possession, inspection of property and accession rights (Mau, 2010, p. 86- 88). Safeguards for borrowers Mortgagors are bound by the lending terms of their agreements that are enforceable under statutory laws. The doctrines of equity supplements statutory regulations to protect borrowers from exploitation. Mortgagors right of redemption is for instance absolute regardless of the delayed