Chapter 14 Multiple choice questions

. Which one of the following statements is FALSE?

A mortgage creates a personal right between the mortgagor and mortgagee.

A mortgage is a proprietary interest that can be either legal or equitable in status.

More than one mortgage may exist over the same estate in land.

A mortgage can only be created over a freehold estate.

. In respect of deciding whether a term should be struck out of a mortgage for being oppressive / unconscionable, which one of the following is NOT a consideration that a court will take into account?

The equality of bargaining power between the parties.

The reasonableness or otherwise of the clause in question.

The experience of the mortgagor.

Whether the mortgagor received independent legal advice.

. Which one of the following statements is TRUE?

In respect of legal mortgages all requirements under s101 LPA 1925 must be satisfied before power of sale arises.

In respect of legal mortgages all requirements under s103 LPA 1925 must be satisfied before power of sale becomes exercisable.

Good title will never pass to a purchaser where the mortgagee sells the mortgaged property after power arises but before it becomes exercisable.

A court order must be obtained before a mortgagee seeks to sell a mortgaged property.

. Which one of the following statements is FALSE?

A mortgagee can seek to sell the mortgaged property whenever he wishes, subject to meeting the requirements under ss101 and 103 LPA 1925, and need not wait for a buoyant market to achieve a good price.

A mortgagee, when selling a mortgaged property, must obtain a fair and true market value for the property at the time of sale.

A mortgagee cannot generally sell a mortgaged property to himself.

A mortgagee is obliged to incur additional expense, where appropriate, to achieve a higher price for the mortgaged property at sale.

. Which one of the following statements is TRUE in respect of the remedy of possession where the mortgage in question is legal?

A mortgagee can only seek the remedy of possession once a default has occurred and not before.

A court order must be obtained before repossession is sought.

Upon repossession a mortgagee must account for any income received from the property on the footing of wilful default.

Repossession can only be sought once the requirements under s101 LPA have been met.

. Which one of the following statements is TRUE where the mortgage in question is legal?

An appointed receiver is deemed to be the agent of the mortgagee who appoints him.

The power to appoint a receiver arises and becomes exercisable in accordance with ss101 and 103 LPA 1925 respectively.

A mortgagee must appoint a solicitor to act as a receiver.

Application of money received from the mortgaged property must be applied by the receiver in accordance with s105 LPA 1925.

. Which one of the following statements is FALSE?

A legal mortgage over registered land will be registered and entered on the charges register of that land at the Land Registry.

A first legal mortgage over unregistered land, where the mortgagee has the title deeds, will bind the whole world.

A second or subsequent legal mortgage created over unregistered land where the mortgagee does not have the title deeds ( a puisne mortgage), should be registered as a Class C(iv) land charge to take priority over subsequent mortgages.

An equitable mortgage over unregistered land must be registered as a Class C(iii) land charge to take priority over subsequent mortgagees.

. Which one of the following statements is FALSE?

A mortgagor acquires an equitable right to redeem upon the expiry of the legal date for redemption.

A right to redeem a mortgage cannot be removed from the mortgagor completely.

A right to redeem a mortgage may be postponed provided it does not render the right to redeem worthless and has not been obtained by oppression.

The equity of redemption is the ability to redeem the mortgage even after the legal date for redemption has passed.

. Which one of the following is a leading authority on the law of undue influence?

Royal Bank of Scotland v Etridge (no2) (2002)

Knightsbridge Estates Trust Ltd v Bryne (1939)

Cheltenham & Gloucester BS v Norgan (1996)

Palk v Mortgage Services Funding plc (1993)

. Which act provides the mortgagor with some protection where possession of a dwelling house is being sought by a mortgagee?

Consumer Credit Act 2006

Administration of Justice Act 1970

Law of Property Act 1925

Supreme Court Act 1981

Chapter 14 Multiple choice questions

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