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

Property and Mortgages - Essay ExampleThe general rule is that the interest reverts to the borrower upon completion of refinancing the mortgage. The history of mortgages dates back to the s take downteenth century. Throughout this period, doctrines of virtue have been applied to protect mortgagors from mortgagees exploitations. Statutory regulations have so far recently been formulated to ensure mortgagors protection. The courts have similarly joined the efforts. The scope of mortgages covers any move in which primer is used, and is offered on any interest on land as well as opposite properties other than land. This paper seeks to investigate the assertion that mortgages are a suppression of truth and a suggestion of falsehood, mortgage destroys our economy. The paper will explore the intelligent aspects of mortgages with the aim of supporting the statement. Difference amid legal and equitable mortgages The major difference between equitable and legal mortgage is the level of formality that is involved on the process of creating the mortgage. A legal mortgage requires strict formalities that include a written contr modus operandi. All terms of the mortgage agreement are stipulated and the document signed. Equitable mortgages on the other hand involve deposition of title to the subject estate without making formal commitments. Legal mortgages are executable within the strict interpretation of the police of airplane propeller act (1925) and must be under deed. This means that the mortgage binds any interest in the land, both original and transferred. An equitable mortgage is however informal and do not bind a purchaser in good faith who takes the property for value without the knowledge of existence of the mortgage (Slorash and Ellis, 2007, 121). another(prenominal) difference between a legal mortgage and an equitable mortgage is the transferability of interest in the subject land. While property in the piece of land is transferred to the mortgagee under a legal mortgage, only possession passes in an equitable mortgage and the mortgagee has to seek judicial intervention for transfer of property in the land in case of a defaulted refinancing (Sharma, 2010, 212). Rights of the mortgagee The mortgage agreement creates a number of fulls to the mortgagee. The first right 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). There 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 ground for suit against the mortgagors engagement (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 strand 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 representative absolute irrespective of the delayed