LEGAL MORTGAGE Meaning and
Definition
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A legal mortgage refers to a formal arrangement between a lender and a borrower where the borrower uses their property as security to obtain a loan, typically financial in nature. It is a legally binding document that details the terms and conditions of the mortgage, including the amount of loan, interest rate, repayment schedule, and the rights and responsibilities of both parties involved.
This type of mortgage gives the lender the right to take possession of the property if the borrower fails to repay the loan as agreed upon. The legal mortgage is filed with the appropriate authority, usually with the land registry office, to provide notice to third parties that there is an existing mortgage on the property.
The legal mortgage offers protection to the lender by ensuring that they have a legal claim on the property and can recover the outstanding loan amount through the sale or foreclosure of the property if the borrower defaults on their loan. It also offers protection to the borrower, as the terms and conditions of the mortgage, including the repayment schedule, cannot be changed without their consent.
In summary, a legal mortgage is a legally binding agreement that allows a lender to use the borrower's property as collateral for a loan. It provides security for the lender and outlines the rights and responsibilities of both parties involved in the mortgage transaction.
Common Misspellings for LEGAL MORTGAGE
- kegal mortgage
- pegal mortgage
- oegal mortgage
- lwgal mortgage
- lsgal mortgage
- ldgal mortgage
- lrgal mortgage
- l4gal mortgage
- l3gal mortgage
- lefal mortgage
- leval mortgage
- lebal mortgage
- lehal mortgage
- leyal mortgage
- letal mortgage
- legzl mortgage
- legsl mortgage
- legwl mortgage
- legql mortgage
- legak mortgage
Etymology of LEGAL MORTGAGE
The word "legal" comes from the Latin word "legalis", which means "relating to the law". It originated from the Latin word "lex", meaning "law". The term "mortgage" has a similar Latin origin, derived from the word "mortuus", meaning "dead", and "gage", meaning "pledge".
The combination of these two words, "legal" and "mortgage", refers to a mortgage that is valid and enforceable within the legal framework. A legal mortgage is a type of mortgage recognized and regulated by the legal system, ensuring the rights and obligations of both the borrower and the lender.
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