A mortgage is a type of security where a borrower (mortgagor) transfers the title of his property over to a lender (mortgagee). This helps the bank (mortgagee) to mitigate the risk from lending a large sum of money. The mortgage agreements need to be in writing and gives the lender the right to foreclose on the mortgaged property. The lender has the right to take possession of the mortgaged property in the event the borrower defaults. Several other rights that mortgagee have includes:Right of Possession of the PropertyRight to insure the PropertySale of the Mortgaged PropertyAppointment of a ReceiverThe borrower has the right to reconvey the title once the payment of the sum due and interest is repaid.
Other than the borrower, the mortgage may be granted by a third party.Under the Mortgagee right of Sale of the Mortgaged Property, the mortgagee can sell the property once the mortgage money is due and one of the following conditions is satisfied. Notice is given requiring mortgage payment and default on payment for three months after service;Interest is in arrears and unpaid for one month after becoming due;Breach of a mortgage provision apart from mortgage payments or interest settlementsGuaranteeIt is a written promise by a person to be responsible for the debt of the borrower. There are two contracts occurring simultaneously, the main contract is between the creditor and debtor and the sub contract of guarantee between the creditor and guarantor. Liability of guarantor is secondary and borrower remains primarily liable. The guarantor’s liability will only arise when there is a default by the borrower.
Upon default of the lender, the guarantor is liable for debts of the lender. A guarantee is voidable under vitiating factors. Examples of vitiating factors are:Misrepresentation: False Statement regarding a material fact given to the GuarantorNon-Est Factum: Show that the contract was “Not his deed”Undue Influence: Agreement was given through unfair or improper conduct/Real consent was not given.Garnishee OrderA garnishee is a person who owes the Judgment Debtor money. When the Judgment Creditor garnishes the debt, the garnishee will be ordered to pay the debt to the Judgment Creditor instead of the Judgment Debtor. In order to garnish the debt, the Judgment Creditor must first apply to Court for a provisional garnishee order.
This is to show cause proceedings where the garnishee confirms that there is money due and owing to the Judgment Debtor by the Judgment Creditor. The Court may then proceed to create a final garnishee order, ordering the garnishee to pay amounts due to the Judgment Debtor instead of the Judgment Creditor.The bank must stop dealings with the account and is no longer entitled to carry out the customer’s instructions. https://www.supremecourt.gov.sg/rules/court-processes/civil-proceedings/post-trial-matters/enforcement-proceedingsNon-Est Factumhttps://www.lawteacher.net/free-law-essays/contract-law/five-vitiating-factors-that-undermine-a-contract-contract-law-essay.phpThe contract is void if he can show that He was induced to sign the contract by a trick or fraud;He made a fundamental mistake regarding the nature of the document; andHe did not make a careless mistake in signing the document.