Mortgages and Securities
What is a mortgage?Put simply, a mortgage is a security interest in real property held by a lender as a security for a debt, usually a loan of money, owed by the registered owner of the property.
A mortgage in itself is not a debt, it is the lender’s security for a debt. It is a transfer of an interest in land (or the equivalent) from the owner to the mortgage lender, on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed.
In other words, the mortgage is a security for the loan that the lender (called “the mortgagee”) makes to the borrower (called the “mortgagor”).
Of course, most mortgages are held by the banks and other major financial institutions who prepare their documents “in house”.
How we can helpWe do however act for private or smaller mortgagees in relation to their loan and security documentation, and of course the many mortgagors who need to borrow from a bank or other financial institution in order to purchase a property.
In giving advice and providing assistance to mortgagees and mortgagors alike, we are able to and are often called upon the carry out the following tasks:
- Witnessing mortgage documents and supplying certificates;
- Preparation of and advising on loan documents;
- Preparation of and advising on Memoranda of Mortgage and terms of Mortgage;
- Registration of Memoranda of Mortgage or caveats supporting unregistered Mortgages;
- Vendor Finance;
- Arranging and attending settlements;
- Discharging paid out mortgages;
- Documentation for loans within families secured by mortgage or caveat.