ADMS 2610 Lecture Notes - Lecture 8: Hire Purchase, Public Auction, Fee Simple
Document Summary
An agreement made between a debtor and a creditor in which the title to property of the debtor is transferred to the creditor as security for payment of the debt. Old method of securing payment of indebtedness. Transfer title of property to the creditor. A secured claim (similar to mortgage) registered against real property under the. Does not transfer property to the creditor. Originally means of securing debt by transferring an interest in land. Common law agreement was strictly enforced. Only first mortgage may be the legal mortgage. A mortgage subsequent to the first or legal mortgage a mortgage of the (cid:373)o(cid:396)tgago(cid:396)"s e(cid:395)uity. Equitable right of a mortgagor to acquire title to the mortgaged property by payment of the debt secured by the mortgage. Exception: if bona fide mortgagee has notice of prior unregistered mortgage. Entitled to remain in possession of mortgaged property during term of mortgage.