MORTGAGEE DUTIES

Question 1

MORTGAGEE MUSTS

Answer 1

• act to achieve a good price (cuckmere brick co v mutual finance 1971)
• duties are in equity due to relationship between the two

DUTY TO:

• act in good faith
• take reasonable care
• obtain fair and proper price

Question 2

DUTIES

Answer 2

• mortgagee can choose when and if to sell (cuckemere)
• can sell at undervalue only with mortgagors consent (mercantile credit v Clarke 1996)
• duty to obtain proper price on mortgagor (Philbin v Davis 2018)
• must be on the market for reasonable amount of time (predeth v castle Phillips finance 86)
• may not sell to a neighbour without placing property on open market (skipton building society v stott 00)

Question 3

MORTGAGEES DUTIES II

Answer 3

• no requirement to incur expense or take steps to increase value (silven properties v RBS Ltd 2004)
• can not sell to self (farras v farras ltd 1888)
• can not sell to self or agent but may sell to associated person (tse Kwong lam v Wong chit seng 83)