Email to Lawyer
I have heard about vendors of land selling a property, the buyer registering the contract of sale and yet the vendor can mortgage the land again.
Furthermore that in respect of the sale proceeds in the future that any gain over the original purchase price would be utilised in repaying the subsequent mortgage taken out by the vendor.
Is that true?
REPLY from Legal Consultant
Thank you for your email of November 21st 2006.
I have looked into and studied your query and please find herein below my reply:
The purchaser who has deposited his sale contract with the District Land Office, has nothing to worry about if thereafter the land will be mortgaged by the Vendor.
The sale contract has priority over the mortgage. Consequently the proceeds from the future sale of the property will not be used for the repayment of the subsequent mortgage.
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