Hi,
I know there has been some debate about whether a borrower using a terms contract should or should not be place on the title.
I was surfing the legal sites and came across the following tibit of info...
A mortgage gives the creditor ownership rights over the mortgaged property, although the debtor will normally keep possession of the property. In a legal mortgage, the creditor becomes the legal owner of the property (subject to an equity of redemption4). For an equitable mortgage, the debtor keeps the legal title, and the creditor gets an equitable right, that is, a right to full ownership if the debtor defaults.
(4. This is a right to compel the creditor to give the ownership of the property back when the debtor has performed all its obligations under the arrangement.)
Here's the link -> http://www.agd.nsw.gov.au/lrc.nsf/pages/DP28CHP2
It is discussion of the need for reform, because at the moment there is no single register to check ownership of different types of securities. Interesting to learn the different forms that ownership can take.
Regards
Michael Gruber
I know there has been some debate about whether a borrower using a terms contract should or should not be place on the title.
I was surfing the legal sites and came across the following tibit of info...
A mortgage gives the creditor ownership rights over the mortgaged property, although the debtor will normally keep possession of the property. In a legal mortgage, the creditor becomes the legal owner of the property (subject to an equity of redemption4). For an equitable mortgage, the debtor keeps the legal title, and the creditor gets an equitable right, that is, a right to full ownership if the debtor defaults.
(4. This is a right to compel the creditor to give the ownership of the property back when the debtor has performed all its obligations under the arrangement.)
Here's the link -> http://www.agd.nsw.gov.au/lrc.nsf/pages/DP28CHP2
It is discussion of the need for reform, because at the moment there is no single register to check ownership of different types of securities. Interesting to learn the different forms that ownership can take.
Regards
Michael Gruber
