Jared engaged Mackenzie as his lawyer to handle a real estate purchase on his behalf. Mackenzie examined the title to the property and discovered that the land was subject to a registered outstanding mortgage in favour of Steven. If the purchase agreement did not provide for the assumption of the mortgage by Jared, the vendor of the property would be obliged to obtain a discharge of the mortgage before Jared would be required to complete the transaction.

Question

Quizplus · Accepted Answer

In real estate transactions, if the purchase agreement does not explicitly state that the buyer (in this case, Jared) is to assume the existing mortgage on the property, then it is the responsibility of the seller (vendor) to ensure that any outstanding mortgages, such as the one held by Steven, are discharged (paid off or settled) before the transaction can be completed. This ensures that the buyer receives the property free of any previous encumbrances.

Jared Engaged Mackenzie as His Lawyer to Handle a Real