Business, Legal & Accounting Glossary
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.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Equitable Mortgage are sourced/syndicated and enhanced from:
This glossary post was last updated: 6th April, 2020 | 5 Views.