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Unformatted text preview: Torrens Title, all registered mortgages
are legal mortgages, but an unregistered
mortgage is equitable only. With respect to the
old system, only the first mortgage is a legal
mortgage—all others are equitable only.
Outline the rights of the mortgagee
and the mortgagor. The rights of the
mortgagee (lender) include:
• to sue on personal covenants (things
agreed to do);
• to appoint a receiver (receives rents and
profits); CO6 CO7 CO8 • on foreclosure, to become the owner of
the mortgaged property through the
mortgagor’s loss of the equity of redemption;
• power of sale—a mortgagee, in exercising
the power of sale, owes a duty to take
reasonable precautions to obtain the true
market value of the mortgaged property at
the date on which the mortgagee decides
to sell it.
Regarding the mortgagor’s rights to
possession of the mortgaged property:
• In the common law system the mortgagor
has no right to possession. However, it is
usual for the deed of mortgage to give the
right of possession to the mortgagor until
• In the Torrens system the registered
proprietor merely gives the mortgagee
an interest that...
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This document was uploaded on 04/23/2012.
- Three '12