Case Law - Mortgages

Question 1

China & South Seas Bank v. Tan (1990)

Answer 1

The sale must be at the market rate applicable at the point of sale but when to sell is a decision for the seller

Question 2

Cuckmere Brick Ltd. v. Mutual Finance Ltd. (1971)

Answer 2

Where reasonable steps are not taken, the lender must provide the shortfall between the value achieved and the true value.

Question 3

Four-Maids Ltd. v Dudley Marshall (Properties) Ltd. (1957)

Answer 3

The legal mortgagee has a right to take possession, unless a term of the contract states otherwise

Question 4

Medforth v. Blake (2000)

Answer 4

Receivers owe more than a ‘duty of good faith’, they must actively manage the business to support the paying off of the debt.

Question 5

Silven Properties v. RBS (2004)

Answer 5

However, receivers need not improve or develop properties. Their duties are not the same a those of mortgagees

Question 6

Tse Kwong Lam v. Wong Chit Sen (1983)

Answer 6

The seller must take, and provide supporting evidence demonstrating, reasonable steps to protect the interests mortgagor