Mortgage Law and Real Property Act

This assignment delves into the intricacies of mortgage law, particularly focusing on the interplay between chattel mortgages and the provisions of the Real Property Act. It examines how section 58 of the Act empowers a mortgagee to exercise a statutory power of sale, and analyzes the implications for both mortgagors and purchasers. Additionally, it explores whether section 57 of the Act can be circumvented by mortgagees attempting to contract out of its protections.

Running head: FINANCE AND SECURITY
Finance and Security
Name of the Student
Name of the University
Author Note

1FINANCE AND SECURITY
Question 1
Cool wants to start a conveyance company and in this regard he took a loan from
Sleazy against his property. Cool did not pay any money back to Sleazy after the promised
period crossed Sleazy can sell the property. In a mortgage by legal charge or technically "a
charge by deed expressed into due by way of legal mortgage", Cool remains the legal owner of
the property, but Sleazy (Giordano and Alces 2017) gains sufficient rights over it into enable
them through enforce their security, such as a right toward take possession of the property or sell
it. In other words, the mortgage is a security for the loan that the lender makes into the borrower.
It is a transfer of an interest in land (or the equivalent) from the owner toward the mortgage
lender, on the condition that this interest will do returned into the owner when the terms of the
mortgage have been satisfied or performed.
A mortgage is a security interest in real property held by a lender as a security for a debt,
usually a loan of money. A mortgage in itself is not a debt; it is the lender's security for debt. Tax
liens, in some cases, will come ahead of mortgages to protect the lender, a mortgage by legal
charge is usually recorded in a public register (Swan 2015).
Since mortgage debt is often the largest debt owed by the debtor, banks and other
mortgage lenders run title searches of the real estate property through make certain that there are
no mortgages already registered on the debtor's property which might have higher priority.
For this reason, if a borrower has delinquent property taxes, the bank will often pay them toward
prevent the lien holder from foreclosing and wiping out the mortgage. A mortgage is the standard
method by which individuals and businesses can purchase real estate without the need into pay
the full value immediately from their own resources (Salmon 2016).

2FINANCE AND SECURITY
The mortgage loan is used for residential mortgage lending, and commercial mortgage
for lending against commercial property. In most jurisdictions mortgages are strongly associated
with loans secured on real estate rather than on other property (such as ships) and in some
jurisdictions only land may do mortgaged. So we can see that though Cool will be the real owner
of the property but as the Title deed of the property was under mortgage, in that case the Sleazy
will generate enough right against the property so that he may sell the property or take
possession over the property. (Velencoso, Baile and Pradi 2017).
In the case, Cool did not pay for the interest of the loan, since taking the property as
mortgaged for starting on the business of conveyancing.Thus Sleazy can sell the property to
recover the money which he had lend to Cool for the business. The loan should have been repaid
by Cool but not a single instalment was paid by him till he was given the loan. Thus Sleazy can
sell the property t recover the property (Korngold 2015).

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Question 2
In many states, on buying business, the tax authority has the right to come after and find
out the seller ho have owed the sales, the use of payroll and other business taxes. After the
clearance is issued by the tax authority known as the "clearance letter" saying the seller is current
in his sales and use taxes on the closing date. Ask about sales taxes and payroll taxes. If the seller
has employees , ask if he was using a payroll service, and make sure the current employment tax
payments (Stern 2014).
A client wants to purchase a small property as a coffee connection. The sale includes the
sale of plant and equipment, stock in hand, goodwill. There are also four staffs employed in the
business. A licensed conveyancer assists the client to protect his interest during the purchase of
property (McDonnel et al. 2016).
As a licensed conveyancer the suggestion would be firstly to offer toward buy the assets
of the business, and form a separate company into act as the purchaser. Second, if the money is
owed and it is being sued by someone, then it can’t be assumed that any of those liabilities if one
buys the assets. If the seller is a corporation or LLC, under no circumstances should you buy
stock in his business. First, you get a better tax treatment, since your "tax basis" in the assets will
do the amount you paid for them, rather than the amount your seller paid for them long ago.
If the seller does, he'll have through pay them before the closing takes place. Most states
have done away with these, but many states still require the buyer of a business toward notify the
seller's creditors that the transaction is going on (Finn 2014).

4FINANCE AND SECURITY
It is to watch out for bulk sales laws. Failure through get a list of the seller's creditors and
send "notices of sale" into them may give the seller's creditors a shot at undoing (or "rescinding")
the transaction in order into prevent the seller's assets from being sold out from under them. Even
if the seller has no creditors at all, which is a rare occurrence, the state tax authority generally
wants a copy of the "bulk sales notice" so it can determine if the seller owes any sales, use or
other business taxes (Pearce 2015).

5FINANCE AND SECURITY
Question 3
The mortgage under the Torrens System a registered mortgage is a legal mortgage. The
mortgagee could sell (or beneficially retain without selling) the security as the legal document
which impose additional statutory preconditions through sale of contractual precondition in the
mortgage (most commonly a requirement into service of exercise a power of sale. The Consumer
Credit Code and the Farm Debts Mediation Act, they live sold in aid of the mortgagee.
With respect through non-monetary defaults the need into serve a section 57(2)(b) notice
can either altogether or in lots by public auction or by private. Where a mortgagee is authorised
by section 57 (2) into exercise the contract, or both such modes of sale, and subject into such
conditions as the (Nelson et al .2015) Sale is outside of the RPA are governed by section 111 (1)
of the Conveyance Act.
Equitable mortgages
There is no power of sale is being exercised by the mortgagee”. There is been rectified at
the time proceedings had commenced) under the mortgage (Hardman 2017).
Avoidance of mortgage agreement as per section 57.
Attempting through sell the security by virtue of a power of attorney rather than into that
registered mortgagee cannot sell land except by way of the power conferred by power, but rather
on requesting the court toward exercise of its discretion through order the property or some sort
of default notice, or the mortgage comes within the ambit of legislation. It follows that even if
there is a contractual power of sale in the contained in this Act

6FINANCE AND SECURITY
The mortgagee obtains the acts as a charge (rather than a conveyance of the title).Owner
of that land, but could not live so until the mortgagor’s equity of redemption was. Thus any
power of sale conferred by the Convincing Act can only live exercised. The mortgage is thus a
chattels mortgage and is not governed by the Real shares before the provisions of the Act can
live invoked in favour of that mortgage (Nguyen 2014).
Typically as part of the mortgage the mortgagee will hold, as a security document, and
when the statutory power of sale under RPA section 58 is also exercisable. Section 109(1) of the
Convincing Act implies a power of sale to any mortgage.
The result is that a mortgagee cannot avoid section 57 of the Real Property Act by
mortgagee shall live a sufficient discharge into the purchaser of such land or to be contracted out
of under section 58A of the Real Property Act, but that same as section owner of the land (Cook
2017).

7FINANCE AND SECURITY
References
Cook, D.J., 2017. WHEN IS A RIGHT OF PUBLICITY LICENSE GRANTED TO A LOAN-
OUT CORPORATION A FRAUDULENT CONVEYANCE?. U. Denv. Sports & Ent. Law
J., 20, pp.1-45.
Finn, J.N., 2014. Fit and proper but not solvent: the slow development of financial security as a
requirement to legal practice in New Zealand.
Giordano, H.S.J. and Alces, P.A., 2017. Personal Property Leasing: Article 2-A of the Uniform
Commercial Code. NY Practice Guide: Business and Commercial, 3.
Hardman, J., 2017. Some Legal Determinants of External Finance in Scotland: A Response to
Lord Hodge. Edinburgh Law Review, 21(1), pp.30-54.
Korngold, G., 2015. Real estate transactions: cases and materials on land transfer, development
and finance. West Academic.
McDonnell, J.B., Coogan, P.F., Hogan, W.E. and Vagts, D.F., 2016. Fraudulent Conveyances
and Revised Article 9. Secured Transactions Under the UCC, 1.
Nelson, G., Whitman, D., Burkhart, A. and Freyermuth, R., 2014. Real Estate Finance Law, 6th
(Hornbook Series). West Academic.
Nguyen, X.T., 2014. Financing Innovation: Legal Development of Intellectual Property as
Security in Financing, 1845-2014. Ind. L. Rev., 48, p.509.
Pearce, R., 2015. Defending an Englishman's Castle Can I Sell My House but Continue Living in
It-The North-East Property Buyers Litigation. Denning LJ, 27, p.178.

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Salmon, M., 2016. Women and the law of property in early America. UNC Press Books.
Stern, P., 2014. Personal Property Security: Conflict of laws under the PPSA. Law Society
Journal: the official journal of the Law Society of New South Wales, 52(2), p.38.
Swan, M., 2015. Preparing your practice for e-conveyancing. LSJ: Law Society of NSW Journal,
(9), p.92.
Velencoso, L.M.M., Bailey, S. and Pradi, A. eds., 2017. Transfer of Immovables in European
Private Law (Vol. 16). Cambridge University Press.