NTIn ForceAct
Law of Property Act 2000
101Co-existing rights of mortgagee under prior mortgage
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101 Co-existing rights of mortgagee under prior mortgage
(1) In this section, prior mortgagee means a mortgagee who is
entitled to the benefit of a mortgage that has priority over the
mortgage in respect of which the mortgagee exercises his or her
right of foreclosure.
(2) Until an order for foreclosure is registered, a prior mortgagee of the
property the subject of the order has the same rights and remedies
at law and in equity that the prior mortgagee would have had if the
legal estate in the property was vested in the prior mortgagee and
the mortgagor had a right of quiet enjoyment of the property for as
long as the mortgagor does not default in the payment of an
amount of principal money or interest or in the observance or
fulfilment of another provision contained in the mortgage document
or implied by this or another Act.
(3) Nothing in this section:
(a) affects the right of a prior mortgagee to exercise the
mortgagee's right of foreclosure in accordance with this
Division;
(b) until the registration of an order for foreclosure – has the effect
of making a prior mortgagee of property the subject of the
order that is leased land liable for the payment of rent under
the lease or the observance or fulfilment of any other term of
the lease; and
(c) affects the rights or liabilities of a prior mortgagee after the
registration of the order for foreclosure.