Equitable Mortgage

Business, Legal & Accounting Glossary

Definition: Equitable Mortgage

Full Definition of Equitable Mortgage

An agreement which does not satisfy the formality requirements to be a legal mortgage, but which the courts might be prepared to enforce on equitable grounds. In particular, if the Mortgagor and the Mortgagee have a written contract to create a mortgage, but no Deed has been executed, this might constitute an equitable mortgage. The Mortgagee under and equitable mortgage is in a precarious position because his security will be lost if the mortgagor sells the mortgaged property to a purchaser without notice, and doesn’t repay the loan. However, if the mortgagee registers his mortgage as a class C(iii) LandCharge (UnregisteredConveyancing) or a Notice (RegisteredConveyancing) then it will be enforceable against the purchaser of the mortgaged land.

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Page URL
Modern Language Association (MLA):
Equitable Mortgage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 16, 2021 https://payrollheaven.com/define/equitable-mortgage/.
Chicago Manual of Style (CMS):
Equitable Mortgage. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/equitable-mortgage/ (accessed: September 16, 2021).
American Psychological Association (APA):
Equitable Mortgage. PayrollHeaven.com. Retrieved September 16, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/equitable-mortgage/

Definition Sources

Definitions for Equitable Mortgage are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th April, 2020 | 5 Views.