MORTGAGES

Mortgages Act (NRCD 96)

Home Finance Mortgage Act (Act 770)

S 7(2) Act 770

An unregistered Mortgage is valid as between the original parties. Rights cant be
created for a third party

S7
The Mortgagor still remains liable
Mortgagee can sue Mortgagor

S8 - Implied covenants on creation of covenant

Mortgagor has the right to mortgage

Q. What happens when the Mortgagor defaults (Rights of Mortgagee at Default)

Mortgagee can sue (s 15(a) NRCD 96)

Selling of the property (it can only be done by court action S18 NRCD 96)
Mortgagor must be given the opportunity before a foreclosure.
S 20 Act 770 However the Mortgagee can sell the property without a
recourse to the court

NRCD 96
Mortgage can apply to the court for the appointment of the receiver of the mortgage

Act 770
Mortgagee need not go to court. He can appoint the receiver on his own

S 17 NRCD 96 0r
Take possession of property (this action does not confer title to the mortgagee). In
event t
Mortgagee in possession is liable to the mortgagor

S 13 ACT 770
Mortgagee can take possession of THROUGH the use of police pursuant to a warrant

Act 770 has evolved

Mortgage is only in respect of immovable property per our law.

Mortgagor has an equity of redemption. He can redeem property anytime before
foreclosure
NB
What is a mortgage?
Requirements for a mortgage

Art 267 and 266 (Issues about compulsory acquisition / constitutional and statutory
constraints)

Effects of compulsory acquisition