Mortgages Flashcards
What are the formalities to create a legal mortgage? Which Section of which Act?
Created in a deed. Section 52 Law of Property Act 1925
What are the four remedies for mortgagees?
- Possession
- Appointment of a receiver
- Power of Sale
- Foreclosure
Lenders can take possession of the property as soon as the mortgage is complete- subject to provisions within the contract. Which case?
Four Maids v Dudley Marshal
No violence or threat of violence may be used to enter a property. Which Section of which Act?
Section 6, Criminal Law Act 1977
A court can adjourn possession proceedings if a mortgagor brings a claim under which section of which Act?
Section 36 Administration of Justice Act 1970
A mortgagee does not have to bring proceedings to exercise his right to possession. Which case?
Rapaigealach
The right to appoint a receiver is implied into every deed. Which section of which Act?
Section 101 Law of Property Act 1925
The power to appoint a receiver only arises once the legal date for redemption has passed. Which section of which Act?
Section 101 Law of Property Act 1925
Where are the conditions set out for what must have occurred for the power to appoint a receiver to have become exercisable?
Section 103 Law of Property Act 1925
A receiver must be appointed in writing. Which section of which Act?
Section 109 Law of Property Act 1925
The receiver must apply the income in a certain order according to which section of which Act?
109(8) Law of Property Act 1925
With both receivership and possession, a lender must manage a property with due diligence. Which case?
White v City of London Brewery
The power of sale is implied into all mortgages created by deed. Which Section of which Act?
Section 101 Law of Property Act 1925
The power of sale must have arisen. Which section of which Act?
Section 101 Law of Property Act 1925
The power must be exercisable according to the conditions in which section of which Act?
Section 103 Law of Property Act 1925
Lenders must act in good faith and take reasonable care to obtain the true market value. Which case?
Cuckmere Brick v Mutual Finance
Sellers must apply the proceeds of a sale in which order according to which section of which Act?
Section 105 Law of Property Act 1925:
- Payment of all costs charges and expenses as incident to the sale
- Prior mortgages
- Mortgagee’s own mortgage
- Mortgages with less priority
- Balance to the mortgagor
The buyer of land from a mortgagee takes the property:
- Free from an interests that the selling mortgagee had priority over
- Subject to any interests that had priority over the selling mortgagee.
Which section of which Act?
Section 104(2) Law of Property Act 1925
Explain what “foreclosure” is.
Foreclosure is an equitable remedy that will immediately vest all legal and equitable rights in the property in the mortgagee.
How may a mortgagor object to foreclosure?
Under Section 91(2) of the Law of Property Act 1925
In unregistered land how are mortgages registered?
The first mortgage takes possession of the title deeds (Section 85(1) Law of Property Act 1925
Subsequent mortgages are puisne mortgages and are created as land charges.
A mortgagee has priority over all interests created before the mortgage, but is subject to all interests created after it. Which Section of which Act?
Section 104 Law of Property Act 1925
The order of priority is dependent on the order in which a mortgage is registered on the register. Which Section of which Act?
Section 48 Land Registration Act 2002
Which section governs how to distribute income for a receiver?
Section 109 Law of Property Act 1925
Who was the Judge in Abbey National v Cann?
Lord Oliver
Was there a scintilla temporis (moment in time) between NEPB acquiring the legal title to the property and the lender gaining a mortgage in which NEPB was free to create equitable or legal interests?
No there was not. Appeal to the Supreme Court pending.
