ADMS 2610 Lecture Notes - Fee Simple, Fide, Public Auction
9 Aug 2012
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Document Summary
An agreement made between a debtor and 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: contains terms of mortgage, conditions of discharge. Transfer title of property to the creditor. A secured claim (similar to mortgage) registered against real property under the land titles system. Does not transfer property to the creditor. Historical development: land an important form of wealth, pledged as security for debt, originally means of securing debt by transferring an interest in land, common law agreement was strictly enforced. Harsh results: equitable doctrine of redemption. Only first mortgage may be the legal mortgage. Equitable mortgage (second or subsequent mortgage: a mortgage subsequent to the first or legal mortgage. Equity of redemption: equitable right of a mortgagor to acquire title to the mortgaged property by payment of the debt secured by the mortgage.
