1. ARRANGING A MORTGAGE
1.1 Basics
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The term "mortgage" is often loosely applied and is usually
understood to mean the loan itself; it is in fact the assignment
of Freehold or Leasehold Estate (most commonly a house or business
premises) from the mortgagor (the borrower) to the mortgagee (the
lender) as a security for the loan. Thus, in the event of default,
the mortgagee has the right to take possession of the property and
sell it to regain the debt.
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A domestic mortgage is an assignment of a dwelling place e.g. house,
bungalow, or flat by an intended or current owner occupier intended
for his/her own occupation.
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A commercial mortgage is an assignment of business property e.g.
shop, professional office, factory, form of tenanted dwelling or
one intended for tenancy.
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The terms, conditions and evidence of the assignment are in a deed
of mortgage which is agreed by both borrower and lender. The deed
duly executed (signed) is lodged with the deeds of the property
and safely kept and stored by the lender.
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Both the purchase of a property and a deed of mortgage are contracts
and as such are governed by the general law of contract
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