Professional Documents
Culture Documents
Types of mortgages
i) Legal mortgages
ii) Equitable mortgages ( Informal)
Legal Mortgages
• This is a mortgage that is registered as
provided under s.3(4) of the Mortgage Act
• A legal mortgage is created by deed. It is
created by signing a mortgage deed which is
then registered as an encumbrance on a
certificate of title.
Advantages of a registered mortgage
• Rights are automatic e.g sale without recourse
to court
• Third party is put on notice of the legal
interest.
• Creates rights in rem and priority over all
subsequent mortgages.
Equitable mortgages/ Informal mortgages