Mortgage is a document which operates to give lender legal estate in property. It usually provides for the reversion for the legal estate to the borrower once he repays the loan.

A Mortgagor is the person who is laying down is property as a collateral to secure a loan.

A Mortgagee is the party giving the loan and securing the the property as collateral for repayment of the loan.

A mortgage arises where property transferred or otherwise dealt with in order to secure the repayment of a debt to the discharge for some other form of obligations. The person who transfers the property by way of security is called the mortgagor. The lender ( the creditor- who obtains interest in the property is called the mortgagor.)

Simply put, when you mortgage your property or land you are the mortgagor, the person or company you mortgage your property to is the mortgagee.

when you mortgage your land, the mortgagee collects the original title or documents of your property or land and by so doing he has the Legal title. After giving him the original documents, what you have is an Equitable title to the property. Once you pay back the mortgage, the legal mortgage revert back to you.

A mortgage may be created either by deed or by more writing or even deposit of title deed.

Types Of Mortgage

1. Legal Mortgage
2. Equitable Mortgage




How to Create a Legal Mortgage

The creation of a legal mortgage depends on the location of the property in Nigeria.

1. Northern States/ Eastern States

In these states, there is no statutory provision governing the mode of creation of a Legal mortgage. Since a person can only have leasehold interest in Land courtesy of Land use act( this means you can only have land as a tennat for..................Read More Visit: www.legalify.ng/blog