Law of Property Essay Example | Topics and Well Written Essays - 1750 words - 1

Law of Property - Essay Example 25). When a mortgager of residential property fails to repay his mortgage, he will find it difficult though not impossible to prevent the mortgage from recovering the property and selling it (Blackstone, 2009 p. 35). Fillipo and Gianni should understand that Mortgage in property law results from two different influences. Its form and origin belong to the law in that the constraints by which it is made to act as security only belong to the courts equity. Therefore, if the mortgagor did not pay on the contractual date, he at one time can forfeit the mortgagee. This can be sued in contract to for money repayment. Accordingly, the legal right to redeem the property is very limited, and that they may end up losing the property to HBSB bank (Clarke & Kohler, 2005 p. 36-7). In this case, Fillipo and Gianni as mortgagees have a right to possess the residential property. By virtue of how legal mortgages are created, the lender is considered as having an estate in the residential land thus he is given an immediate right to possession instantly the ink dries on the mortgage. Notably, the mortgagee may possess the property at any moment even when the mortgage is not in default basing only to the provision contrary in statute or in the mortgage itself (Serkin, 2012 p. 38-9). In the usual course of events, this right will not be exercised by the mortgagee and will be content to permit the mortgagor to continue possessing the property so long as the terms of mortgage are followed and payments are done as agreed. Indeed, the mortgagee could have promised in the contract not to seek possession except if the mortgagor breaches any other obligation or defaults repaying. If this happens, possession may be granted in virtue of the mortgagee’s right not in virtue of a solution to be requested from the court. In this context therefore, mortgaged property can only be taken and sold basing on the procedure of mortgage creation, the rights of the lender, and the rights of the mor tgagor (Vook, 2011 p. 59). Before property is taken and sold Fillipo, Gianni and the HBSB bank should consider the way this mortgage was created. The first step is to involve a mortgage advisor to offer an agreement in principle or approval. This illustrates what the provider will likely be willing to lend basing on specific terms and conditions. Such a step can be helpful when a mortgagor has chosen his mortgage and the property is to be offered. Fillipo and Gianni clearly stated their income and they are a position to service the mortgage (Hill, 2009 p. 61-4). In order to make this mortgage legal, the parties involved in the transaction included a licensed conveyance or a conveyance solicitor who assisted in drawing the contract, making local searches, and carry out other legal paperwork. Some lenders may refer a mortgage to a specified solicitor but a personal recommendation may be a choice. After this, it is important that the property is valuated. The lender will often have the prosperity valued to ensure that it is worth the agreed upon price. If it is not, then it will affect the amount to be lent. It is therefore advisable for a mortgagor to get his own survey done as well or to upgrade the valuation of the lender’s survey into a more detailed one. After mortgage offer, the mortgagor’s solicitor can set a date for contract exchange with the seller’