Mortgagee's Rights and Duties Quiz

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?

After the three conditions under Section 103 are satisfied (C) Signup and view all the answers

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

The power of sale can still be exercised under LPA 1925 (C) 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?

Serve notice on any spouse who has registered their occupation right (A) Signup and view all the answers

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

Enforce its security and have the mortgage debt repaid (A) Signup and view all the answers

Under what circumstances does an implied Power of Sale arise?

Under Section 101 of the Landlord and Tenant Act 1925 (D) 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?

Any spouse who has registered their occupation right under the Family Law Act 1996 (A) Signup and view all the answers

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

It governs how and in what circumstances the power will operate (A) Signup and view all the answers

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

Mortgagor (C) Signup and view all the answers

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

By charge by way of legal mortgage (A) Signup and view all the answers

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

If the mortgagee wants to sell the property and needs it vacant (C) 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?

Before the ink is dry on the mortgage (C) Signup and view all the answers

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

Reasonable effort to protect rights as a mortgagee (C) 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?

By deed (C) Signup and view all the answers

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

The mortgagee must account for any income received and any income that should have been generated through reasonable management of the land. (C) Signup and view all the answers

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

When the mortgagee is entitled to take peaceful entry without seeking possession as per the terms of the mortgage. (D) Signup and view all the answers

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

If the mortgagor is unable to repay any arrears within a reasonable period. (B) Signup and view all the answers

When does Section 36 of the AJA 1970 apply?

It applies only to dwelling houses and not commercial properties. (B) Signup and view all the answers

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

The mortgagor loses any rights to equity of redemption. (B) 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?

The mortgagor must show they can repay any arrears within a reasonable time. (B) Signup and view all the answers

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

The mortgagor must default for three months. (D) 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?

To obtain the best price reasonably possible. (D) Signup and view all the answers

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

The mortgagor still owes the difference. (D) Signup and view all the answers

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

To act in good faith and obtain a proper price. (A) Signup and view all the answers

When can a mortgagee sell a property?

After default by the mortgagor for at least three months. (C) Signup and view all the answers

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

Waiting for an increase in market value. (C) Signup and view all the answers