The right to lease the land may be subject to the

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Unformatted text preview: up the right to possession. While this is the strict result of the granting of the mortgage, it is usual for the deed of mortgage to give the right of possession to the mortgagor until default. Under the Torrens system, the registered proprietor remains the owner and merely gives the mortgagee an interest that entitles the mortgagee to possession in the event of default only. If the mortgagor is in possession, they have the right to receive any rents or profits from the land. The right to lease the land may be subject to the mortgagee’s consent. Remedies of the mortgagee Right to sue on personal covenants A covenant is a clause in an agreement—in this case, the mortgage—whereby the party binds themself to give something to another person to do, or not do, some act. The mortgagor’s obligation to pay the principal and interest is a covenant. If the mortgagor defaults in payment of the principal or interest under the mortgage, the mortgagee is entitled to take action against the mortgagor for breach of the covenant. This right is based on the mortga...
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This document was uploaded on 04/23/2012.

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