Jack enters into a lease with Mary for a term of one year.Before she leased the property,Mary granted a mortgage over the property to the Royal Bank of Canada.Mary does not advise the Royal Bank of Canada of the lease.A month later Mary defaults under the mortgage.Which of the following is TRUE?

Question

Quizplus · Accepted Answer

DThe Royal Bank of Canada can evict Jack and sell the property because the mortgage was granted before the lease and the bank was not notified of the lease, making the bank's interest superior to Jack's lease. However, Jack can continue to observe the terms of the lease until legally evicted, as his rights under the lease are valid until terminated by the proper legal process initiated by the bank.

Jack Enters into a Lease with Mary for a Term