10 Questions
What is the primary purpose of a mortgage?
To provide security for a debt
In the context of mortgages, what does a lien refer to?
A right to possess or retain property
What are examples of valuable chattels used in chattel mortgages?
Ships, aeroplanes, and cars
How is a mortgage different from a lien?
A mortgage involves debt repayment, while a lien involves property possession.
How does a mortgage provide security for the lender?
By allowing the lender to repossess the property if the debt is not repaid
What is the key difference between a lien and an equitable lien?
A lien grants the right to sell the property, while an equitable lien does not.
In what circumstances does a vendor typically have an equitable lien?
When the land is conveyed to the purchaser before it is fully paid.
What distinguishes the mortgagor's relationship with the property in legal mortgages compared to equitable mortgages?
In legal mortgages, the mortgagee has an absolute interest in the property while in equitable mortgages, the mortgagor is considered the true owner.
What does equity look at when considering a mortgage transaction?
The substance of the transaction as security for a debt.
What characterizes an equitable right to redeem in mortgage transactions?
It arises once the loan repayment date has passed.
Learn about how individuals and companies finance property purchases by obtaining loans from banks or finance houses. Explore the concept of using property as security for large loan amounts.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
