Firstly, an equitable mortgage can occur as a legal mortgage that was never perfected by conveying the underlying assets. 19. 21. Upsides of equitable mortgage. Mode of creating mortgages. Equitable mortgage. A registered mortgage provides the credit provider with an … The stamp duty involved in an equitable mortgage is much lower than what is paid in registered mortgage. Sale of mortgaged property . 22. Mortgage Bank of Nigeria, Mortgage Backed Securities, Primary Mortgage Banks, Real Estate Investment Trust. The brother then mortgaged the land to “A” by way of legal mortgage and then to “B” by way of equitable mortgage. Conversion of the equitable mortgage to legal mortgage and the consent was obtained for the equitable mortgage. Conversely, an equitable mortgage exists where there is no legally registered interest. A registered mortgage puts a credit provider in a better position than an equitable mortgage. 17. charges by way of Legal Mortgage. READ ALSO: How to sell Your Properties in Lagos, Nigeria . 24. Realisation of leasehold mortgages. ... (Equity and Trusts in Nigeria). UP-STAMPING It is a known fact that Mortgage documents are required to be stamped as evidence of payment of Stamp duties (taxes) imposed by the Stamp Duties Act or the various stamp duties laws of the state. The common types of mortgage transactions are; Equitable Mortgage and Legal Mortgage . For more information on mortgages generally, see Practice note, Taking security and for more information on mortgages over land, see Practice note, Taking security over freehold and leasehold property . 16. This can occur in a number of ways. 18. However, the various definitions of the word are often used interchangeably, depending on the context. Mode of creating mortgages. An equitable mortgage is considered easy and economical. 20. Realisation of a Right of Occupancy. Realisation of equitable charges by the Court. The common types of mortgage transactions are; Equitable Mortgage and Legal Mortgage. The equitable mortgage holder's rights to the property also dissolve if a third party that does not know of the equitable mortgage buys the property. Equitable mortgages generally operate like legal mortgages, but in case of default, the legal mortgage debt on a property receives satisfaction before that of any equitable mortgage. 15. Mortgage refers to the conveyance of a property by the mortgagor [Debtor] to a mortgagee [Creditor] as security for a loan. Mortgage refers to the conveyance of a property by the mortgagor [Debtor] to a mortgagee [Creditor] as security for a loan. Mortgage Financing in Nigeria 2 1.0 INTRODUCTION ... mortgage and equitable mortgage. For instance, it could mean the loan obtained Legal mortgage is a type of mortgage which transfers the legal interest one has in the property, whether leasehold or freehold in consideration for loan advancement while Equitable Mortgage transfers just an equitable interest in the property to the mortgage. Right to sue for mortgage money. In many states, stamp duty and registration charges in equitable mortgages are as low as 0.1 per cent of the loan amount. 7. Deed Of Mortgage; This document is seen by law as a security for a loan with an undertaken for repayment . For example, if there is a mistake on the transfer deed. An equitable mortgage only transfers a beneficial interest in the asset to the mortgagee with legal title remaining with the mortgagor. 23. Equitable mortgage.

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