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 Jared proceeded with the purchase without obtaining a discharge of the mortgage from Steven, Steven would be entitled to claim payment from Jared for the mortgage amount.

Question

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When a property is purchased that has an outstanding mortgage registered against it, the new owner (in this case, Jared) becomes responsible for that mortgage unless it is discharged prior to or at the time of the sale. Therefore, if Jared proceeds without obtaining a discharge, Steven, the mortgagee, would have the right to claim payment from Jared for the outstanding mortgage amount.

Jared Engaged Mackenzie as His Lawyer to Handle a Real