Chapter 15 Equitable Flashcards
In BC, a lender who holds a mortgage registered as a charge on an otherwise clear title to a borrower’s land has:
(1) the equitable right to redeem the mortgage.
(2) an interest in land created by contract.
(3) priority over every other subsequent creditor and lienholder in respect of the mortgaged land.
(4) the right to retain the mortgagor’s duplicate certificate of title to the mortgaged land until the loan is repaid in full.
2
When a mortgagor grants a mortgage subsequent to a first registered mortgage, the mortgagor has created:
(1) an equitable mortgage.
(2) a legal mortgage.
(3) an assignment of the first mortgage.
(4) none of the above.
1
After the contractual right to redeem has passed on a mortgage:
(1) the borrower must give up the mortgaged property.
(2) the lender is the owner of the mortgaged property.
(3) an equitable right to redeem still exists.
(4) the borrower owes a higher rate of interest on the arrears than on the principal if the borrower redeems.
3
A contract between a seller and a buyer whereby the seller agrees to sell its interest in certain property to the buyer for a price payable by installments and then, to convey legal title to the buyer after payment of the purchase price in the manner agreed, is called:
(1) a mortgage.
(2) an agreement of purchase and sale.
(3) an equity of redemption.
(4) an agreement for sale.
4
Which of the following is an example of an equitable mortgage?
(1) mortgage of the equity of redemption
(2) agreement to execute a legal mortgage
(3) mortgage by way of deposit of the duplicate certificate of title
(4) all of the above
4
A mortgage of the mortgagor’s equity of redemption is called:
(1) a lien.
(2) an equitable mortgage.
(3) an agreement for sale.
(4) a lease.
2
(i) is a conveyance of land as a security for a loan and carries with it the (ii) equitable right to redeem the security on payment of the debt, even after default.
(1) (i) A mortgage; (ii) mortgagee’s
(2) (i) An agreement for sale; (ii) buyer’s
(3) (i) A mortgage; (ii) mortgagor’s
(4) (i) A deposit of the duplicate certificate of title; (ii) borrower’s
3
Which of the following are examples of equitable mortgages?
A. a mortgage disguised as a transfer of land, where the “sale” price is below market value
B. a mortgage which, for procedural reasons only, is unregistrable in the land title office
C. an agreement to execute a mortgage in the future under which the borrower has already received the principal amount
D. a mortgage registered second in priority to another mortgage
(1) A, B and C
(2) A and B
(3) Only D
(4) All of the above
4
A contract between the seller of real estate and the buyer whereby the vendor agrees to sell his/her interest in that land to the buyer for a specified price payable in installments and, upon payment of the price in full, to transfer title to the buyer is called:
(1) an equitable mortgage.
(2) an agreement of purchase and sale.
(3) an agreement for sale.
(4) a disguised form of mortgage.
3
In a mortgage transaction, the mortgagor is:
(1) the borrower
(2) the fee simple owner of the mortgaged property
(3) the holder of an equitable right to redeem the mortgaged property
(4) all of the above
4
a mortgage that is granted, but for procedural reasons is not registrable is
- unenforceable until registered
- recognized as a present equitable mortgage
- only protected by filing a caveat
- still deemed a legal mortage
2
in which of the following situations would bridge financing be the most advantageous form of financing for Jonathon
- jonathon and his wife recently had a second child and are looking to purchase a larger home. jonathon and his wife have found the perfect home in north vancouver but their current home has not yet sold and they need money for a down payment
- jonathon is a first time home buyer looking to buy a townhouse near burnaby
- jonathon has recently retired and is looking for a way to use the equity in his home to finance the purchase of a vehicle
- jonathons children have moved out of the house and jonathon wants to downsize to a smaller home that he can finance completely for his savings
1
which of the following is NOT an example of an equitable mortgage?
- a mortgage disguised as a transfer of land, where the sales price is below market value
- an agreement to execute a mortgage in the future under which the borrower has already received the principal amount
- a mortgage created by providing a lender with a duplicate certificate of title as security for the loan
- a mortgage that is unregistrable in the land title office and is prohibited by statute
4
