What are implied contracts by mortgagor?

Answer 1

The parties are free to enter into any terms they like. Where, however, the contract does not contain all the terms, Section 65 provides for implied terms as follows:

In the absence of a contract to the contrary, the mortgagor shall be deemed to have contracted with the mortgagee that the :

· mortgagor is entitled to transfer the interest (covenant for title);

· mortgagor will assist the mortgagee to enjoy quiet possession;

· mortgagor will pay public charges in respect of the mortgaged property;

· mortgagor covenants as to payment of the rent due on lease where, the mortgaged property is leased;

· mortgagor covenants as to payments of interest and principal on prior encumbrances, where the mortgage is a second or subsequent encumbrance on the property.

Answer 2

Implied contracts by a mortgagor refer to the unwritten or non-explicit agreements between a borrower and a lender in a mortgage transaction. While the terms and conditions of a mortgage are typically outlined in a written contract, implied contracts may exist based on the customary practices and industry standards. These contracts ensure that both parties have certain expectations and obligations towards each other throughout the mortgage process.