6. Legal Requirements of Mortgages
What is a Mortgage in the Legal Sense?
A mortgage is the disposition of interest in land or other property as security for a debt. If the Mortgagor defaults on
payment, the Mortgagee words, the Mortgagee creditors.
Mortgage transactions can be one of the safest ways of lending money, because the property that is offered as security can be sold by the Mortgagee and the proceeds of sale applied in the repayment of the loan.
Mortgage vs Charge
There is a difference between a Mortgage and a Charge. The terms are used interchangeably, but that is not legally correct. Mortgage is a disposition of an interest in the land, while the Charge is not. The Charge only has an interest in the secured property. In other words, the Charge gives the Mortgagee certain rights in respect to possession and sale, over the property charged as security for the loan.
Legal Requirements for Mortgage - Grenada
The Laws of Grenada as it relates to mortgages are still very much ancient. Grenada still operates on a pre-1926 Modes of Conveyances. They are not necessarily outdated, but have not been modernized or amended or improved.