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.

Credit - llbindia.com

4.Submit draft contract to the mortgagee. Ensure all relevant documents are taken into possession i.e Title documents, duly executed application for consent, tax clearance certificate, development levy etc where a company; In addition to the above; a duly executed resolution of the board authorising the loan, ensure the memo of the company allows the transaction, evidence of up to date annual returns have been made, CTC of the certificate of registration, CTC of the register of Directors, Payee returns(if applicable)

5.Ensure the instrument is duly executed by all parties having obligation under the mortgage and in due form as required by law as dictated by the nature of the parties

6.PERFECTION- this entails obtaining the governor’s consent, paying of stamp duty and registration in that order.(this is strict)

7.Where a company is a party, register the mortgage instrument at the CAC within 90 days of its creation.

To be continued with CREATION OF EQUITABLE MORTGAGE

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