Unformatted text preview: age. ✘ PROPERTY AND MORTGAGES REVIEW QUESTIONS
33.8 What is a mortgage?
33.9 What is the distinction between a legal mortgage and an equitable mortgage? Mortgagor’s right to deal with the property
The purpose of the mortgage is that the land should be security for repayment of a loan and nothing
more. Accordingly, the mortgagee is not permitted to take the fee simple outright or to impose conditions or restrictions that make the mortgage materially harder to redeem. Lord MacNaughten in the
House of Lords in Noakes and Co Ltd v Rice  AC 24 said:
Redemption is of the very nature and essence of a mortgage … Equity will not permit any device or
contrivance designed or calculated to prevent or impede redemption.
The right to possession of the mortgaged property depends on whether it is common law system or
Torrens system. The common law system mortgage takes effect as a conveyance of the land to the mortgagee of all of the mortgagor’s interest. This means the mortgagor has also given...
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- Three '12
- CROWN, native title, National Native Title Tribunal