Mortgage Law Flashcards
Mortgage
-Interest in law created by a contract
-it’s an evidence and security of a loan
Personal Covenant
Promise made by the mortgagor (borrower) to pay the mortgage money and interest
Guarantor Cluase
Separate personal covenant of a 3rd part in addition to the borrowers personal covenant
Blended Rate
Take old rate and add it to new rates
1st Mortgage
Legal mortgage
2nd and 3rd mortgage
Equitable mortgage
Equity of redemption
Remaining interest
Duplicate certificate
No documents can be registered while the duplicate certificate is out of the land title office
Present equitable mortgage
Agreement to grant a mortgage in the future
Accelerated Clause
Lend demands full payment immediately
Omnibus clause
In default of payment the lender will make the payment and the amount of the payment will be added to the loan
Lenders Remedies
This gives lenders complete discretion to choose most suitable remedy
Steps for foreclosure?
1 demand letter to the borrower
2 petition
3 petition hearing
4 Order Nii’s
5 Order of conduct of sale or Order absolute
Redemption period?
6 months
Order Nisi
-1st court appearance claim for foreclosure. A judge will grant an order nisi
-it sets the final redemption period. Respondent can redeem the mortgage by paying amount due
Order of conduct of sale (judicial sale)
- not enough equity
- owner can still be liable - personal covenant
- most common in BC
Order absolute
- enough equity
- owner not liable
- lender becomes owner
- no further action can be taken against the owner
Order absolute
- enough equity
- owner not liable
- lender becomes owner
- no further action can be taken against the owner
The purpose of a foreclosure
- to extinguish the borrowers equity right to redeem
- to allow the lender to realize on its security
Receiver Appointment?
Appointed by court
- collect rent
- pay the bills
- generally keeping business going
Receiver Appointment?
Appointed by court
- collect rent
- pay the bills
- generally keeping business going
