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priority of mortgages


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The order in which two or more mortgages of the same property take effect. If there are several mortgages of the same property, and its value is less than the amount due on the mortgages, the respective claims of the mortgagees must be determined. Before 1926, priority often depended on the date order in which the mortgages were created. Since 1925 the order of priority in the case of registered land is according to the date order in which the respective mortgages are registered. A first mortgagee of unregistered land usually retains the title deeds and has priority over others except prior mortgages that are registered as a land charge in the Land Charges Registry. Otherwise the order is governed by the order of registration. Priority of equitable interests is determined by the date at which notice is received by the trustees. See also consolidation of mortgages; tacking.

Subjects: Law.


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