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Home > Law > Law glossary > Law glossary
Equitable mortgage
Last modified: Thu Feb 23 16:37:37 2006
An agreement which does not satisfy the formality requirements to be a LegalMortgage,
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.
LandAndPropertyLaw
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