109Sale of mortgaged property in proceedings for redemption or

109 Sale of mortgaged property in proceedings for redemption or foreclosure (1) If a person who is entitled to redeem mortgaged property commences proceedings for redemption alone, for sale alone, or for sale or redemption in the alternative, the Court may make an order for sale instead of redemption. (2) In proceedings for foreclosure, redemption, sale or for the raising and payment in any manner of mortgage money, the Court may, on the request of the mortgagee or a person interested either in the mortgage money or in the right of redemption, direct a sale of the mortgaged property on the terms, subject to subsection (4), as it thinks just, including the deposit in the Court of a reasonable sum fixed by the Court to meet the expenses of sale and to secure performance of the terms. (3) Subsection (2) applies: (a) despite: (i) the dissent of a person other than a person referred to in that subsection to the sale of the mortgaged property; or (ii) that the mortgagee or person interested in the mortgage money or the right of redemption does not appear in the proceedings; and

Law of Property Act 2000 72 (b) without requiring the Court to allow time for redemption or for payment of any mortgaged money. (4) In proceedings brought by a person interested in the right of redemption and seeking a sale, the Court may: (a) on the application of a defendant – direct the plaintiff to give security for costs as the Court thinks just; (b) give the conduct of the sale to a defendant; and (c) give the directions it thinks just in respect of the costs of a defendant. (5) In any case where this section applies, the Court may: (a) direct a sale without previously determining the priorities of encumbrancees; (b) make an order in favour of a purchaser: (i) vesting the mortgaged property; or (ii) appointing a person to convey the property, whether or not subject to an encumbrance; or (c) in the case of an equitable mortgage, create and vest a legal interest in the mortgagee to enable the mortgagee to carry out a sale of the mortgaged property as if the mortgage had been made by deed or instrument by way of legal mortgage. (6) This section applies to actions brought before or after the (7) In this section, mortgaged property includes the interest which a mortgagee would have power to convey if the mortgagee was exercising the power of sale conferred by this Act.