Rights of a mortgagee – Singapore property for sale/ rent
Singapore property for sale/ rent – In the event of a default by the mortgagor, the rights of a mortgagee to enforce the security over land are as follows:
- For foreclosure: The mortgagee may seek a court order to foreclose the property. This means that the mortgagor’s right of redemption is extinguished. The mortgagee becomes the owner and the mortgagor will no longer be able to recover it.
- To exercise mortgagee’s power to sell the property (often referred to as “forced sale”): In an equitable mortgage, the mortgagee needs to obtain a court order before he can exercise this power of sale. Once the Court order is obtained, the mortgagee can exercise its power to recover outstanding loan through sale at public auction or by private treaty but must ensure that the property is sold at the best possible price given the circumstances.
- To appoint a receiver: Appointing a receiver permits the receiver to hold and manage the property to maximize the property’s income or value through maintenance, improvements or appreciation.
- To grant a lease: A mortgagee in possession of the property can grant an occupation lease not exceeding 21 years or a building lease not exceeding 99 years
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