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PROPERTY LAW – “SEMINAR” 7.1 MORTGAGE Note: “Seminar” 7.1 notes have merged with lecture 7 notes due to format of slides, only the exercises from the seminar exists in this document. Problem Question Parties involved: Rodney – Mortgagor – Insurance clerk who obtains loan from association finance Ltd, newly married, whistle blower Association Finance – Mortgagee – Has mortgage over Rodney’s land Suburban Properties – Purchaser – Has executed contract to purchase land for $38000. What does the mortgage provide? If the mortgagor is in default: o Then there must be a notice giving him seven days to remedy default. A notice is served for 7 days to Rodney to remedy to default, where after 10 days it is sold for below the true value of the property. Under the RPA, it is stated that the mortgagor is to be given a month notice which is the default period, unless they agree otherwise, which they have done. The LPA states that period of notice must be a month or more, so LPA does not apply. o If not remedied, then the mortgagee could sell the property o Should he default – All monies payable under mortgage becomes due and payable immediately. Issues Rodney defaults – Doesn’t make mortgage payments Associated Finance Ltd – Serves him notice demanding payment of all sums due under mortgage within seven days After 10 days – Associated Finance agrees to sell to Suburban Property for the sum of $38000. Valuation suggests $42k-44k is the land’s true value. Position of washing machine – Is it a fixture? What is the relevance of the note that the machine has been obtained with finance provided by Holdco Loans Ltd? Can Rodney overturn the transaction? Requirements regarding notice?
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If Torrens Land, then s 132 and 133 RPA applies – So one month’s notice has to be given. As s 132 holds that he mortgagee must give notice to the mortgagor and s 133 holds that if default continues for longer than one month, the mortgagee is entitled to sell the land. o
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This note was uploaded on 09/27/2011 for the course FINANCE 1001 taught by Professor Profassorted during the Three '11 term at University of Adelaide.

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