The effect of the exercise of the power of sale is to

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: law title, proceedings are brought in the Equity Division of the Supreme Court. The court certifies the amount due and if the amount is not paid within the time specified, the mortgagor’s interest is foreclosed. Under the Torrens system, the mortgagee must first put the land up for sale by public auction. If no appropriate offer is received, an order for foreclosure may be made. Power of sale The power of sale is the usual remedy exercised by a mortgagee against a defaulting mortgagor. The effect of the exercise of the power of sale is to convey the fee simple to the purchaser free of the mortgagor’s right of redemption. If the proceeds of sale are insufficient to clear the outstanding balance, the mortgagee may still sue the mortgagor for the balance. In exercising a power of sale, the mortgagor will obviously be concerned with clearing the debt owed. Since the exercise of that power will extinguish the mortgagee’s equity of redemption, the mortgagee must have some regard to the mortgagor’s interests and tho...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online