APPOINTMENT OF A RECEIVER

Section 19(1)(iii) of the Conveyancing Act and Section 123(1) of the PCL provide for the power of the mortgagee, when the mortgage money has become due, to appoint a receiver of the income of the mortgaged property or any part of it.This statutory right is implied in every mortgage, legal or equitable, created by a deed where the circumstances would allow the mortgagee to exercise a power of sale.

The mortgage money must have become due before a receiver can be appointed.In other words, the legal due date must have expired. The remedy for the appointment of a receiver is open to both legal and equitable mortgages. The legal mortgagee himself may appoint a receiver if he has such power under the mortgage deed. If that power does not exist in the mortgage deed, he can apply to court for the appointment of a receiver. An equitable mortgagee, whose is not by deed, must apply to the court for the appointment of a receiver. The receiver though appointed by the mortgagee, is the agent of the mortgagor hence the mortgagee is not liable to account to the mortagor.

The duty of the receiver is to

TAKING POSSESSION IN MORTGAGE

Can any equitable mortgagee take possession? The answer is no. The right of entry into possession is only available to a legal mortgagee. Possession goes with legal ownership; hence a legal mortgagee is entitled to possession whether or not the mortgagor is in default of payment of the loan. But where he takes possession, he is liable to account strictly to the mortgagor for the rent/profits accruing from the property.It is for this reason that mortgagees do not find the right to possession attractive unless it is used as a preliminary to enforcing the power of sale. But in practice, mortgagees insert in the mortgage instrument a clause that exclude the rule that a mortgagee in possession or a receiver appointed by him shall account strictly

FORECLOSURE

Foreclosure is a judicial process through which the mortgagor’s equity of redemption is terminated and all the interests in the mortgagor property become vested in the mortgagee, subject to the right of other mortgages who rank in priority above him. Foreclosure is more effective when the mortgagee is in need of his capital which cannot be realised from rent or profit on the mortgaged property. An interim order called “a foreclosurenisi” is first decreed giving the mortgagor six months within which to redeem the mortgaged debt. At the expiry of the six months, the order is made absolute. All subsequent mortgagees and the mortgagor should be made parties to the action. There is no doubt that the remedy of foreclosure is available to a legal mortgagee. In Ogundaini V. Araba(SUPRA), the Supreme Court held that foreclosure is available to mortgagee in an equitable mortgage created by deposit of title deed if accompanied by an agreement by the mortgagor to give a legal mortgage when required to do so.Ideally, foreclosure, and not sale, is the appropriate remedy in an equitable mortgage (except the one created by a mere charge).

MORTGAGEE’S RIGHT OF REDEMPTION (RIGHTS OF THE MORTGAGEE)

These are means by which the mortgagee may enforce the security so as to recover the loan. There are basically four of such rights:

1.Statutory power of sale

2.Foreclosure

3.Taking possession and

4.Appointment of Receivers.

1.STATUTORY POWER OF SALE

Under sections 19 (1) of the CA and 123 (1) of the PC & L, every mortgagee (legal or equitable) whose mortgage is created be Deed may enforce its/his security after the legal due date by sale of the mortgage property. Power of sale here is automatic; the mortgagee does not require a court order before he/it can sell. However, for the mortgagee to be entitled to exercise its power of sale, the power must HAVE ARISEN and become EXERCISABLE. 

EQUITY OF REDEMPTION

   Equity of redemption is different from equitable right to redeem.Equity of redemption is the equitable interest which a mortgagor has in the land as the owner.The mortgagor can redeem his property by paying to the mortgagee the principal money and the interest that has accumulated on the principal money. Where the mortgagor has paid to the mortgagee the amount that is due, the mortgagee shall re-convey the property to the mortgagor. A Deed Of Release is usually prepared and the particulars of the document of title of the property that is being re-conveyed to the mortgagor shall be stated in the deed of release.The deed of release shall be registered in the Land Registry and from the date of registration the property of the mortgagor is free from encumbrance.

EQUITABLE RIGHT TO REDEEM

This is the right which arises after the legal date for redemption has passed.The mortgage agreement will provide a legal date within which the mortgagor should have paid.If he fails to pay on or before the legal due date, his legal right to redeem will be extinguished on that date. Before the Conveyancing Act of 1881/1882, if the mortgagor failed to pay the loan on a contractual date, he lost his right to property but was still bound to pay the debt.Equity, however,

‎ LEGAL RIGHT TO REDEEM

This is the right specifically reserved for the mortgagor to recover his property as the owner upon discharging his obligations under the mortgage. But the mortgagor to be entitled to exercise this right must comply punctiliously with the proviso for redemption. Thus a mortgage to secure money loan ordinarily fixes a definite date for repayment and at law, repayment must be made precisely on that date for the mortgagor to be entitled to exercise this very right. Generally the date for repayment may be suspended for any period. But in practice date for redemption is usually short because it is an advantage to the mortgagee to place the mortgagor in default as soon as possible.

MORTGAGOR’S RIGHT TO REDEEM

In Ndaba Nig Ltd v. UBN (2007) NWLR (pt 1040) 439, the court held thus:

“The right to redeem a mortgaged property is so inseparable an incident of mortgage that it cannot be taken away either expressly or by implication, nor can such redemption be limited to time or particular persons. The right of equity of redemption continues until the mortgagor’s title is extinguished or the interest destroyed by sale either under the process of court or by the mortgagee.”

How to stop unsolicited messages from MTN, Airtel, Glo, others

Credit - google.com 

‎Following a Direction to the telecommunications service providers in the country, the operators, will from July 1, 2016, activate the DO NOT DISTURB facility which gives subscribers the freedom to choose what messages to receive from the various networks. With this Direction the operators have been mandated to dedicate a common Short Code (2442) which will enable subscribers take informed decisions. Mr. Tony Ojobo, Director of Public Affairs, Nigerian Communications Commission (NCC), in a statement, said this action was taken in order to protect subscribers from the nuisance of unsolicited texts, and therefore a direct regulatory response to the yearnings of the subscribers. By this action, he explained, the Commission has invoked a regulatory provision which had hitherto been overlooked by the operators. Taking cognizance of the broad range of services which include: Banking/Insurance/ Financial Products, Real Estate, Education, Health, Consumer Goods and Automobiles, Communication/ Broadcasting/ Entertainment/ IT, Tourism and leisure, Sports, Religion(Christianity, Islam, others), the Commission directed the operators to give the necessary instructions and clarifications that will enable subscribers subscribe to a particular service/services /none at all.

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ADVANTAGES AND DISADVANTAGES OF EQUITABLE MORTGAGE

ADVANTAGES OF EQUITABLE MORTGAGE

1.     Where the period of repayment is short, equitable mortgage is preferable because it is easier and quicker to achieve than the legal mortgage.

2.    Equitable mortgage is not affected by the covenant in the head lease.

3.     Successive legal mortgages are possible.

4.      It encourages uniformity in the CA and the PCL States.

DISADVANTAGES

EQUITABLE MORTGAGE OF REGISTERED LAND

Equitable Mortgage of Registered Land– 

applies in the RTL areas of Lagos. It is

effected by a charge and this is achieved by completing the relevant Form which is Form 15. See section 59 (1) RTL, Lagos, which provides thus:

THE DIFFERENCE BETWEEN EQUITABLE CHARGE AND THE OTHER TYPES OF EQUITABLE MORTGAGES

The difference between equitable charge and the other types of equitable mortgage is well illustrated in the case of MATHEWS V. GOODAY(1861)as follows:

“With regard to what are called “equitable mortgages", my notion is this: suppose a man signed a written contract by which he simply agreed that he thereby charged his real estate with fifty pounds to ‘A’, what would be the effect of it? It would be no agreement to give a legal mortgage, but a security by which he equitably charged his land with payment of a sum of money and the mode of enforcing it would be by coming into Court of Equity to have the money raised by sale or mortgage; that would be the effect of such a simple charge.

EVIL PHILOSOPHIES

1. *"WHATEVER WILL BE, WILL BE"*

Whatever will be will not be; you have to make it be. You have a part to play in what will be in your life, so don't leave it to chance.

2. *"HALF BREAD IS BETTER THAN NONE!"*

Why settle for half bread when you can get a full bread or even own a bakery. This is a limiting belief that positions you to settle for less and it is a mediocre philosophy.

3. *"A FOOL AT FORTY IS A FOOL FOREVER"*

A fool at any age can be a fool forever if he refuses to let go of his foolishness. It is never too late to become wise because the day you wake up and wise up is the day you CHANGE!

CREATION OF EQUITABLE MORTGAGE

   An equitable mortgage is a type of mortgage created under the rules of equity. It confers equitable interest on the mortgagee. Equitable mortgage is more suitable for short-term loans. Equitable mortgage is not as secure as legal mortgage, but in practice the mortgagee protects itself by requesting that the mortgagor at the time of creating the equitable mortgage sign a legal mortgage and consent Form, which is kept aside until the mortgagor is in default of repayment and the mortgagee will perfect the legal mortgage to enable it exercise the statutory power of sale. If the mortgagor is not in default, and he successfully pays back the loan, the legal mortgage becomes useless.

STAGES IN A MORTGAGE TRANSACTION

Upon receipt of instruction to effect a mortgage, a legal practitioner is expected to follow the following order:

1.Conduct a search on the title;

2.Write and submit the search report on the property to the mortgagee

3.CONTRACT STAGE; parties agree on the terms of the mortgage. This is put in an agreement to mortgage. This is called the contract stage.

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This is a newly built 16 units of  decent miniflat @ bickersthet estate, off iwaya road, onike-Yaba

DOCUMENTS RQUIRED TO PROCESS GOVERNOR’S CONSENT TO LEGAL MORTGAGE OF LANDS

1.The CTC of the original title documents.

2. 4 copies of the duly executed mortgage deed

3.There (3) years tax clearance certificate of the mortgagor (and the surety, if any)

4. A receipt of payment of the current ground rent / tenement rate/ land use charge on the property to be mortgaged.

5. A duly completed application for Governor’s consent Form –( called Form 1C in Lagos state)

6. Payment of charting , endorsement and consent fees

7. Any other document as may be required by the mortgagee, such as fire insurance policy.

Where the mortgagor is a company, the following additional documents are required:

DISTINCTION BETWEEN LEGAL MORTGAGE CREATED BY ASSIGNMENT/SUB-DEMISE AND ONE CREATED BY A CHARGE BY WAY OF LEGAL MORTGAGE

1)In an assignment/sub-demise, the mortgagor conveys the whole or part of his interest to the mortgagee, whereas the mortgagor by way of a legal charge does not convey any interest in the property. However, the mortgagee enjoys the same right as that of a legal mortgagee created by assignment/sub demise.

2)By a charge the mortgagor can charge several properties. If the mortgages were by assignment/sub-demise, each of the properties would have to be conveyed by a separate instrument.

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SELLING FAST:THE EMPIRE ROYALE APARTMENTS ,VICTORIA ISLAND @ N45M Your Exclusive Address in Lagos Just Became an EMPIRE !!! Affordable Investment opportunity like never before: 3 Bedroom Apartments ▪ Buy and LIVE in ▪ Buy and RENT out ▪ Buy and RESELL Whatever category you belong to or choose, all you need is an initial deposit of N5M and spread balance over 24months @ N48M OR One off payment @ N45M (1st & 2nd Floors only) ROYAL APARTMENTS is another world class projects under The EMPIRE Series being developed by DELUXE RESIDENCES. The EMPIRE ROYAL APARTMENTS is a luxury estate that would accommodate 56 families in a relatively high class residential area of Lagos state. On 7000 square meters of land, its one of our best designs so far has 4 apartment blocks, each with 7 suspended floors to give occupants a panoramic view of Lagos state, coastline of the Atlantic ocean and the on going construction of the Eko Atlantic. Call LAGOS PROPERTY LAWYER 08075142528  With the vast attention to detail and its luxuriously designed spaces and aesthetical facade, ROYAL APARTMENTS shall be a site to behold along the coastline. With the speed of construction of the Lagos state mega city project THE Eko Atlantic, it shall be home to business personnels, doctors, expatriates etc The site is located along the water corporation road, off Ligali Ayorinde and is bounded by the soon to be largest mega business hub of west Africa THE Eko ATLANTIC mega city development. The estate is situated on 7000 square meters of land giving the opportunity to have enough space for landscaping and recreation ROYAL APARTMENTS would be a fully serviced estate with 4 blocks of apartments, each having 7 suspended floors, with 2 apartments on each of the floors. Each apartment block shall have 14 apartments, each with 3 ensuite bedrooms and an ensuite maid’s room, a laundry amongst other standard spaces. It will be equipped with an elevator, main and rear staircase, all placed in the central nerve of the block for easy access from the apartments. There would be an atrium in the centre of the structure which will be open at the top to allow for cross ventilation in the living spaces of the apartments. Call Barr. IMAGIN on 08075142528 (Whatsapp)  BBM: pin:2BC230FB  The site is designed to encourage social interactions. The apartment blocks have been positioned around the central core of the site which serves majorly as its recreational hub and access route to all the apartment blocks. The recreational area has a swimming pool, sit outs, gazebos and a gym. The ground floor in all the blocks was designed majorly for parking and the facility management officer’s office, amongst other facilities. Floor distribution matrix: Ground floor = car parking (20 cars), facility managers office, store, etc. 1st – 7th floor = 2 apartment units Each apartment covers 183 square meters of space The occupants would have access to the following facilities; •Swimming pool, gym and landscaped relaxation sit out area. •Central security, controlled power generation and water supply and waste disposal units THE SITE TYPICAL 1ST - 8TH RESIDENTIAL FLOOR PLAN Royal Apartments also features... • Well paved external areas with exotic horticulture • Security post located at the entrance • Elegant mosaic-tiled swimming pools • Sound-proof, standby generators • Water treatment plant • 2 State-of-the-art elevators • Security and intercom system • Round-the-clock management service The Bedroom: Sleep, Dream and Wake up feeling Royal! Design, elegance and comfort epitomise the en-suite bedrooms with elegant bathrooms, great lighting, and awesome views. Designer colour paints and contemporary elements ensure elegant lifestyle. Large windows throw sunlight into the space accentuated through high ceilings and elevating moods. Built-in and large fitted wardrobes provide ample storage. Rich colours provide an exotic air in the room and the balcony is just right for your private soiree The Kitchen: The Best of Quality Befitting an Empire Assured With custom lighting and cabinetry, the gourmet kitchen is complete with appliances including a burner, oven, microwave oven extractor and others. Exceptional levels of specification, great attention to detail, superior craftsmanship, setting new standards in luxury apartment PRICING: ExclusiveDesignAffordableLuxury PRICING: Own a unit of 3 bedroom (+ in-built maid's room) en-suite Luxury Apartment @ ROYAL APARTMENTS, Victoria Island PROMO OFFER: FLATS: 1st & 2nd floor: Outright Option - N45M Instalment Option - N48M (N5M initial deposit, Spread balance over 24months ) AFTER PROMO: 3rd & 4th Floor: Outright - N51M Instalment Option - N56M (N5M initial deposit, Spread balance over 24months ) 5th & 6th Floor: Outright - N57M Instalment Option - N62M (N5Minitial deposit, Spread balance over 24months ) 7th Floor: Outright - N63M Instalment Option - N68M (N5M initial deposit, Spread balance over 24months ) (Ref 163) Send in all your property briefs: Request | Letting | Sale | Lease | Warehouse | Land We deliver at a swift pace!  Contact :- PROPERTY LAWYER IG: @imagin247  BBM pin:2BC230FB  Twitter: @imagin247 Whatsapp: +2348075142528 E-mail: emmanadebayo@gmail.com FB: www.facebook.com/groups/imagin247 Web: www.lagospropertylawyer.blogspot.com Blog: http://lagospropertylawyer.blogspot.com.ng/2015/10/one-stop-search-centre.html?m=1  SUBSCRIBE HERE: https://feedburner.google.com/fb/a/mailverify?uri=LagosPropertyLawyer&loc=en_US Thanks!  #lagospropertylawyer

THREE KILLED IN LAGOS LAND DISPUTE

‎Three men were on Monday murdered by suspected land grabbers in Lagos.
The incident occurred at about 2:00pm at Oriwu, Igbodu in Ikosi Ejirin, Agbowa.

CREATION OF SUCCESSIVE LEGAL MORTGAGES USING THE SAME PROPERTY AS SECURITY

This occurs when the same property is mortgaged twice or more in security transactions. The possibility of creating successive legal mortgages over the same property depends on where the property is located.

(a)In the Conveyancing Act States: successive legal mortgages cannot be created over the same property. This is because in the CA States, the applicable law for the creation of legal mortgage is the common law, and at Common Law successive legal mortgages could not be created overt the same property. The rational behind this is that where a mortgagor creates a legal mortgage, he transfers his legal title in the property to the mortgagee and what he has left is mere equity of redemption, which can at best only be used to create an equitable (not a legal) mortgage.

(2)In the PCL States: successive legal mortgages can be created over the same

ADVANTAGES OF LEGAL MORTGAGE

1) It is easier to enforce a legal mortgage. The equitable mortgagee must obtain a court order before he can sell or take possession of the property or foreclose or appoint a receiver/manager.

Credit - llbindia.com

2) A legal mortgagee without notice of the equitable mortgage takes priority over the equitable mortgagee

A FEDERAL HIGH COURT ANNULS HIKE IN ELECTRICITY TARIFFS

A Federal High Court in Lagos has annulled the hike in electricity tariffs announced by the Nigerian Electricity Regulatory Commission(NERC) in 2015.

In his judgement on Wednesday, July 13, the presiding judge, Justice Mohammed Idris, described the increase as procedurally ultra vires, irrational, irregular and illegal.

CEMENT PRICES SKYROCKET IN NIGERIA

There are fresh increases in the prices of cement-based products effected recently by the manufacturers.

The prices of cement were recently reduced by Dangote Cement Plc, a leading producer of cement in the country by approximately 40 per cent. The move by the market leader slashed cement prices from about N2, 000 or N1, 850 to a price as low as N1, 350 or N1, 400 and N1000 per 50 kilogram bag.

However, the situation has drastically changed in the second quarter of 2016, as there has been undulating increase in price since the month of May according to The Guardian market research. In locations such as; Egbeda, Igando, Ogba, Agege, Sango, and Ikeja in Lagos area, a bag of cement now sells between N1, 550, N1, 600, N1, 700, N1, 800 and N2, 000 across all brands.

DISTINCTION BETWEEN LEGAL MORTGAGE CREATED BY ASSIGNMENT AND LEGAL MORTGAGE CREATED BY SUB-DEMISE

Banks prefer the legal mortgage by sub-demise for two reasons:

1.Lack of Privity - In a legal mortgage created by an assignment, even though there is no privity of contract, there is privity of estate, and under the principles in Tulk v. Moxhay 41 ER 1143, the burden of restrictive covenants that run with the land in equity bind the mortgagee, who is therefore bound to observe and perform such covenants. This opens the mortgagee to liability for breach of the covenants. On the other hand,in a mortgage by sub-demise

HOTLINES OF LAGOS STATE TASK FORCE AGAINST LAND GRABBERS (Omo-Oniles)

Are you preparing to start construction on your landed property in Lagos?

You would have, by now saved or budgeted a portion of the construction fee to go the Omo-oniles.....

The Lagos state government, however, are backing their words with action by giving to the general public the hotlines of the recently set-up task force to tackle these land grabbers.

EVENT CENTRE FOR SALE DIRECTLY ALONG LAGOS/ABEOKUTA EXPRESSWAY

Credit - lagospropertylawyer.blogspot.com

‎This is a worthwhile sale offer and opportunity for smart investors to purchase this prime event centre which is located directly along Lagos/Abeokuta Expressway by Cement bus stop.

This event centre consist of two(2) halls with a seat capacity of 200 and 500 respectively.

 The event centre is developed on a land area measuring approximately 1620sqm.

The space is also very ideal for a Church with a Certificate of Occupancy as it's title.

 Price: N130M

 (Ref 939)

Thank you for reading, If you find the post helpful, I’d love to hear your thoughts in the COMMENT box. Also, don't forget to LIKE and SHARE with your social media friends, family, colleagues, social members, neighbours and everyone in your world, who you think might find this information useful..Lastly SUBSCRIBE to our website via Email to get the latest updates directly in your mail box for FREE. Your email address is safe with us! SUBSCRIBE BELOW !!! ‎Send your Adverts/Listing/Press Release/Articles to emmanadebayo@gmail.com ‎ ‎

REVIEWS and CAVEAT : We hope you have found this information helpful. Please note that this information is provided for general informational purposes only and is not intended to be legal advice. No lawyer-client relationship is formed nor should any such relationship be implied. Any post, article, or comment or opinion expressed is not intended to substitute for the advice of a qualified lawyer, but that of the individual who made the contribution. If you require legal advice, please consult with a qualified lawyer. If you need assistance in contacting a lawyer, you may contact us via email emmanadebayo@gmail.com and we would be glad to match you with a lawyer who meets your requirements.  Send in all your property briefs: Request | Letting | Sale | Lease | Warehouse | Land We deliver at a swift pace! ‎ ‎ ‎

CREATION OF LEGAL MORTGAGE

The location of the property determines the mode of creation and the law(s) applicable. The country is divided into three jurisdictions, namely –

1) The Conveyancing Act, 1881 (CA) States - Under the Conveyancing Act, we have two Methods/modes of creating a legal mortgage:

Credit - firstamericanrealtymedellin.com

URGENT REQUEST FOR A DEMOLISHABLE PROPERTY IN AGEGE

Still searching.....

On a failed attempt to buy a storey building and renovate at Agege axis as propose before,

Our client is in need of a demolishable property within Agege and has expanded her scope of search to area such as Oshodi mafoluku axis also.

Budget: #15m

Please kindly forward whatever you have with the pictures to this Whatsapp number 08075142528 or pin:2BC230FB

CREATION OF MORTGAGES

There are, at common law, two broad types of mortgages, namely, LEGAL and EQUITABLE MORTGAGE.

Credit - firstamericanrealtymedellin.com

(1) LEGAL MORTGAGE

This mortgage created pursuant to statutory provisions. It is usually by Deed. There are three operative laws regulating the creation of legal mortgages in Nigeria, namely,

CHECK LIST OF MATTERS TO BE COVERED BY A SEARCH REPORT

a) Date of Search;

b) Name of Borrower;

c) Name of the person giving security, if different from the borrowers;

d) Description of the property;

e) Title of the borrower or person giving security;

Credit - noroip.com

f) Encumbrances (if any);