CILEx L3 Land Law Basics 4

Question 1

What is a 'mortgage' in land law?

Accepted Answer

A security interest given over property to secure repayment of a loan

Answer

A legal mortgage is a charge by way of legal mortgage under s.87 LPA 1925. The mortgagor (borrower) retains ownership of the land but gives the mortgagee (lender) certain rights (including possession and sale) as security for the loan.

Question 2

What is the 'equity of redemption'?

Accepted Answer

The mortgagor's right to redeem (repay) the mortgage and recover the property free from the mortgage

Answer

The equity of redemption is the mortgagor's equitable right to redeem the mortgage — i.e., to pay off the debt and have the mortgage discharged. Courts of Equity protected this right against 'clogs and fetters' that might prevent redemption.

Question 3

What is the mortgagee's right of 'possession' and when does it arise?

Accepted Answer

A mortgagee has the right to possession of the mortgaged property as soon as the mortgage is created, but the courts will restrict this unless there is default

Answer

At law, a legal mortgagee has the right to possession as soon as the mortgage is created (Four-Maids v Dudley Marshall [1957]), though in practice courts will only permit possession where the mortgagor is in default, particularly for residential mortgages under s.36 Administration of Justice Act 1970.

Question 4

What is a 'rentcharge'?

Accepted Answer

A periodic sum charged on freehold land independent of any lease or mortgage

Answer

A rentcharge is a legal interest under s.1(2)(b) LPA 1925 — it is an annual or periodic sum charged on land owned in fee simple (freehold), not arising under a lease. New rentcharges cannot be created under the Rentcharges Act 1977.

Question 5

What is meant by 'indefeasibility of title' in registered land?

Accepted Answer

Once title is registered, it is guaranteed by the state and generally cannot be defeated by prior unregistered interests

Answer

In registered land, the register is conclusive as to title. A registered proprietor's title is guaranteed by the state (through the Land Registry's indemnity scheme), and prior unregistered interests that do not qualify as overriding interests are generally overridden.

CILEx Level 3 Practice Test

CILEx Level 3 Practice Test

CILEx L3 Land Law Basics 4