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Legal Terms - equitable charge (equitable mortgage)
a *mortgage in which the borrower is not granted a legal claim to the property. An equitable mortgage could occur in the following ways: 1. The mortgagor can only grant an equitable mortgage if he has only a *equitable interest in the land. A mortgage given by a beneficiary under a *trust of land, for instance, could only be equitable. 2. If the mortgage is not made by deed, which is necessary for legal mortgages, an equitable mortgage will result. Nevertheless, the mortgage agreement needs to be in writing. 3. According to Section 27(1) of the Land Registration Act of 2002, a charge by way of a legal mortgage of registered land only becomes effective in equity if it is not recorded on the register.
a *mortgage in which the borrower is not granted a legal claim to the property. An equitable mortgage could occur in the following ways: 1. The mortgagor can only grant an equitable mortgage if he has only a *equitable interest in the land. A mortgage given by a beneficiary under a *trust of land, for instance, could only be equitable. 2. If the mortgage is not made by deed, which is necessary for legal mortgages, an equitable mortgage will result. Nevertheless, the mortgage agreement needs to be in writing. 3. According to Section 27(1) of the Land Registration Act of 2002, a charge by way of a legal mortgage of registered land only becomes effective in equity if it is not recorded on the register.
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