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Unformatted text preview: y. Any second or subsequent mortgages are only
mortgages of the mortgagor’s equity of redemption and are therefore recognised by equity only. In the
event of default, a legal mortgage takes priority over an equitable mortgage. 863
PROPERTY AND MORTGAGES Disadvantages of the common law system
Some of the disadvantages of this system are:
• Uncertainty of title. Because of the need to have possession of every document involving the
particular block of land before the owner can conclusively prove that he or she is the true owner,
any lost or forged document may allow a break in the chain of ownership, which could deprive the
present owner of a good title.
• Cost. Because of the complexity of a conveyance involving common law title transfer, solicitors for
both vendor and purchaser examine the title independently each time the land changes hands. This
is time-consuming and costly.
• Complexity. Special skill and knowledge is required to deal with the deeds relating to land.
• Certification. There is no state Certificate of Title.
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This document was uploaded on 04/23/2012.
- Three '12