chapter 11 equitable Flashcards
An equitable mortgage can be created in each of the following ways EXCEPT:
- by registration in the land title office of the duplicate certificate of title.
- by mortgage of the equity of redemption.
- by an agreement to give a mortgage.
- by disguising a mortgage as a transfer.
Correct Answer: 1
In British Columbia, mortgages are generally registered as charges against the land and the first registered mortgage is treated like a legal mortgage. Any subsequently registered mortgage will be an equitable mortgage charging the borrower’s equity of redemption. To properly create an equitable mortgage with a duplicate certificate of title, it is necessary to acquire the certificate from the land title office and to then deposit it with the lender.
Which of the following provides the best definition of an equitable mortgage?
(1) It is the name given to a mortgage of the equity of redemption.
(2) It arises where an agreement to grant a mortgage in the future exists.
(3) It is created where title deeds are given as security for a loan.
(1), (2) and (3), taken together, provide the best definition of an equitable mortgage.
Correct Answer: 4
Your course manual reviews the different types of equitable mortgages in detail. All of the items named describe different kinds of equitable mortgages.
