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. The mortgage would be extinguished if the vendor gave Jared a deed to the land, as the mortgage is an agreement between Steven and the present owner.

Question

Quizplus · Accepted Answer

The mortgage being a registered interest against the property means it remains attached to the property until it is discharged or paid off, regardless of any change in ownership. The transfer of the property to Jared does not automatically extinguish the mortgage.

Jared Engaged Mackenzie as His Lawyer to Handle a Real