Mortgagee's Rights and Duties Quiz
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Questions and Answers

What must be determined before the power of sale can be exercised?

  • If the mortgage deed precludes the power of sale
  • If the mortgage deed includes a provision for court order
  • If the mortgage money is due and in arrears
  • If the contractual date for redemption has passed (correct)

    • Under what circumstances does a power of sale arise according to LPA 1925?

  • When the property is sold at an auction
  • When there's a contractual date for redemption (correct)
  • When the mortgage money is paid in advance
  • When the mortgage holder requests a court order

    • What does Section 101 of LPA 1925 specify about a power of sale?

  • It mandates immediate sale upon arrears in mortgage payments
  • It requires seeking court approval before selling the property
  • It provides that a power of sale arises when the mortgage money is in arrears (correct)
  • It allows sale only through a public announcement

    • When can a power of sale be exercised under LPA 1925?

    <p>After the three conditions under Section 103 are satisfied</p> Signup and view all the answers

    What happens if there is a provision in the mortgage deed precluding the power of sale?

    <p>The power of sale can still be exercised under LPA 1925</p> Signup and view all the answers

    What must a mortgagee do when seeking possession of mortgaged land with a dwelling house under the Family Law Act 1996?

    <p>Serve notice on any spouse who has registered their occupation right</p> Signup and view all the answers

    What does the Power of Sale allow a mortgagee to do?

    <p>Enforce its security and have the mortgage debt repaid</p> Signup and view all the answers

    Under what circumstances does an implied Power of Sale arise?

    <p>Under Section 101 of the Landlord and Tenant Act 1925</p> Signup and view all the answers

    Who is entitled to be made a party to the proceedings when a mortgagee seeks possession of mortgaged land?

    <p>Any spouse who has registered their occupation right under the Family Law Act 1996</p> Signup and view all the answers

    How does the mortgage agreement affect the operation of the power of sale?

    <p>It governs how and in what circumstances the power will operate</p> Signup and view all the answers

    What is the term used for an individual granting a mortgage for the advancement?

    <p>Mortgagor</p> Signup and view all the answers

    According to Section 23(1) LRA 2002, how is the creation of a mortgage typically done?

    <p>By charge by way of legal mortgage</p> Signup and view all the answers

    Under what circumstance can a mortgagee seek possession of a property according to Section 52(1) LPA 1925?

    <p>If the mortgagee wants to sell the property and needs it vacant</p> Signup and view all the answers

    In the case of Four Mauds Ltd v Dudley Marshall, when can a mortgagee go into immediate possession of a property?

    <p>Before the ink is dry on the mortgage</p> Signup and view all the answers

    What must a mortgagee demonstrate when seeking possession according to Quennell v Maltby 1979?

    <p>Reasonable effort to protect rights as a mortgagee</p> Signup and view all the answers

    In what form must a conveyance be according to Section 87(1) LPA 1925 if a mortgagee wants to manage the land to generate income?

    <p>By deed</p> Signup and view all the answers

    What is the equitable duty of a mortgagee when taking possession of land?

    <p>The mortgagee must account for any income received and any income that should have been generated through reasonable management of the land.</p> Signup and view all the answers

    Under what circumstances is a mortgagee entitled to take peaceful entry without seeking possession?

    <p>When the mortgagee is entitled to take peaceful entry without seeking possession as per the terms of the mortgage.</p> Signup and view all the answers

    In what situations can a court suspend, postpone, or adjourn a mortgagee's application for possession?

    <p>If the mortgagor is unable to repay any arrears within a reasonable period.</p> Signup and view all the answers

    When does Section 36 of the AJA 1970 apply?

    <p>It applies only to dwelling houses and not commercial properties.</p> Signup and view all the answers

    What happens if a mortgagor remains on the land after a foreclosure sale?

    <p>The mortgagor loses any rights to equity of redemption.</p> Signup and view all the answers

    What action must a mortgagor definitively show in order for a court to adjourn a mortgagee's application for possession?

    <p>The mortgagor must show they can repay any arrears within a reasonable time.</p> Signup and view all the answers

    What condition must be met for the power of sale to arise?

    <p>The mortgagor must default for three months.</p> Signup and view all the answers

    In the Cuckmere Brick Co.V case, what was highlighted as the duty of the mortgagee in a sale?

    <p>To obtain the best price reasonably possible.</p> Signup and view all the answers

    What happens if the best price obtained at an auction is lower than the amount owed?

    <p>The mortgagor still owes the difference.</p> Signup and view all the answers

    What duty does a mortgagee have in terms of obtaining a fair price for the land?

    <p>To act in good faith and obtain a proper price.</p> Signup and view all the answers

    When can a mortgagee sell a property?

    <p>After default by the mortgagor for at least three months.</p> Signup and view all the answers

    What is NOT an obligation of a mortgagee in a sale?

    <p>Waiting for an increase in market value.</p> Signup and view all the answers

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