Topic 4 Principles of Mortgage & Property Law Flashcards
Mortgage law & practice has evolved over time to who’s benefit?
Borrowers or property owners?
Borrowers
What is “Conveyance”?
Transfer of property rights
Who is the Mortgagor?
The borrower
Who is the “Mortgagee”?
Lender
In Scotland the “Mortgagor” is called?
The Debtor
In Scotland the “Mortgagee” is called?
The Creditor
1925 was a significant one for property owners but what acts were brought in?
- Law of Property Act
- Land Registration Act
- Land Charges Act
What did the 1925 property acts do?
Made it simpler to create mortgages through a “Legal Charge”
The 2 forms of property ownership are what?
- Freehold
- Leasehold
What does “Fee Simple” mean in relation to property ownership?
Right for property to be inherited on death
What does “Absolute” mean in relation to property ownership?
No limits on ownership
What does “In Possession” mean in relation to property ownership?
Immediate entitlement to occupation. Nobody else has a prior claim
What does “Term of Year Absolute” mean in relation to a Leasehold estate?
Limited duration must be fixed & certain
What do the 1925 Acts mean for a lender regarding a claim of insurance over a mortgaged property?
They have a right to determine how the proceeds of insurance claim are used
What is a legal charge know as in Scotland?
Standard security
The first charge holder (Mortgagee) will hold what Security?
The title deeds
Other charge holders will be recorded where?
Land Charges Registry
Second or subsequent charges are normally offered by who?
Lenders who specialise in higher risk secured lending
How many owners can be registered as legal owners of a property?
4
What is an “Equitable (Beneficial) owner”?
Have a right to a share in a property but not a legal owner
What is “a trust of land”?
Created when a property is jointly owned legal owners become trustees
How many legal owners do there need to be to for jointly owned property to be sold?
2 legal owners
According to the Law of Property Act 1925 what is the term to describe joint owners of property?
Tenant/Tenancy
If a property is owned on a “Joint Tenancy” basic what happens with the ownership of the property if one of the owners dies?
The ownership is automatically transferred to the other owner