Clogging the Equity of Redemption: An Outmoded Concept?
QUT Law and Justice Journal, 2(1), pp. 35-52
18 Pages Posted: 14 Jul 2016
Date Written: 2002
To understand the concept of equity of redemption it is necessary to understand the influences of equity upon money lending transactions involving the security of real property over many centuries. Under an old system mortgage, the legal title of the borrower was conveyed to the mortgagee and, upon redemption of the debt, the mortgagor was entitled to a reconveyance of the land which had been the subject of the security. The Court of Chancery developed jurisdiction to set aside the legal title of the mortgagee by compelling the mortgagee to reconvey title to the mortgagor where the mortgagee refused to do so, thus recognising the mortgagor’s right to redeem the security. This jurisdiction owes its origin to the influence of the church in endeavouring to curb the effects of usury.
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