1. Provided the buyer is a bona fide purchaser for full value, the buyer gets good title to the house once the monies are paid over to the seller's solicitor. It is up to the seller's solicitor to ensure that the monies are applied first in discharge of the mortgage. However, neither the buyer, nor his solicitor, have any duty in this regard. Once the buyer pays full value without notice of any defect in title, then the buyer gets good title and a discharge from any liability arising from the transaction. The buyer's solicitor is required to check whether there is a mortgage against the property and that this will be discharged before title is furnished. This is simply dealt with by way of solicitor's undertaking within the transaction. However, once the seller's solicitor gives such an undertaking to discharge the mortgage, then the buyer and his solicitor are absolved from any liability in relation to the mortgage.
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"The buyer's solicitor is required to check whether there is a mortgage against the property and that this will be discharged before title is furnished."
The buyer's solicitor is required to check whether there is a mortgage against the property and that this will be discharged before title is furnished.
Will the mortgage be discharged if the property is in negative equity?
Frys are interpreting the 2009 act:
the mortgagee’s power of sale cannot be exercised unless 28 days’ prior notice has been served on the mortgagor and either a court order is obtained for the sale or the mortgagor consents in writing to it (such consent to be given not more than seven days before the power of sale is exercised). These provisions cannot be contracted out of in relation to housing loan mortgages; • subject to the terms of a court order, a mortgagee in possession must take steps within a reasonable time either to sell the mortgaged property or, if a sale is not appropriate, to lease it and use the rent to reduce accruing interest. Traditionally, a mortgagee was allowed to choose the timing of a sale. A similar obligation is placed on a receiver appointed by a mortgagee. These provisions cannot be excluded from housing loan mortgages.
I got mixed up with my Morgegor and Morgagee.....
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