Mortgage Encumbrance

[JCM]

Hi all,

I recently found a development site which fit my criteria and was in the process of doing some due diligence. I had the agent forward the Sec32 on which I found a Mortgage Encumbrance.

Can someone elaborate on this and how will it affect the buyer?

The property has been on the market for over 6 months and I am wondering if this is the reason why.

Regards
JCM

 

[Aaron_C]

That means that a bank is owed money on the property.....which is very normal.....it has nothing to do with the property being on sale for 6 months.

 

[JCM]

Sounds Good

So any property that has a mortgage with a bank will have this? Then it would be quite normal to see this on a sec32 under Encumbrances and Covenants.

Regards
JCM

 

[Aaron_C]

So any property that has a mortgage with a bank will have this? Then it would be quite normal to see this on a sec32 under Encumbrances and Covenants.

Yes, that's correct. You only need to get worried if you see multiple mortgages or caveats on the property.