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KembaraXtra – Legal Terms – Puisne Mortgage
A puisne mortgage is a legal mortgage over unregistered land where the mortgagee does not hold the title deeds as security. Normally, the first mortgagee retains possession of the title deeds, which gives notice of that mortgage to others dealing with the land. Subsequent mortgages therefore become puisne mortgages because the later mortgagees cannot hold the deeds themselves. This creates a greater risk that later interests may be overlooked or challenged.
To protect a puisne mortgage, registration is generally required under the system governing registration of encumbrances. Registration ensures that later purchasers or creditors are informed of the mortgage’s existence and preserves its priority. Without registration, the mortgagee may lose protection against later interests acquired in good faith. Puisne mortgages therefore illustrate the importance of registration and notice within land law and secured transactions.
A puisne mortgage is a legal mortgage over unregistered land where the mortgagee does not hold the title deeds as security. Normally, the first mortgagee retains possession of the title deeds, which gives notice of that mortgage to others dealing with the land. Subsequent mortgages therefore become puisne mortgages because the later mortgagees cannot hold the deeds themselves. This creates a greater risk that later interests may be overlooked or challenged.
To protect a puisne mortgage, registration is generally required under the system governing registration of encumbrances. Registration ensures that later purchasers or creditors are informed of the mortgage’s existence and preserves its priority. Without registration, the mortgagee may lose protection against later interests acquired in good faith. Puisne mortgages therefore illustrate the importance of registration and notice within land law and secured transactions.
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