Real Estate

Mortgage and equity in mortgage agreement

  • Last Updated:
  • Nov 13th, 2020 3:20 pm
[OP]
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Nov 9, 2020
14 posts

Mortgage and equity in mortgage agreement

In my mortgage agreement, I have the following:
15.01 To better secure for the MORTGAGEE the repayment of the PRINCIPAL SUM and interest and all further advances made by the MORTGAGEE to the MORTGAGOR under this Mortgage:

(a) The MORTGAGOR hereby mortgages to the MORTGAGEE all its estate and interest in the MORTGAGED PREMISES;
The mortgage amount is less than 50% of the cost of the property. I'm wondering if this is a non-standard clause in the agreement, which gives all rights to the property, even to its equity, in the event of a default?
Would appreciate a knowledgeable response. The lawyer says this clause does not mean the transfer of the equity to the lender in any such event, but only the lent part of the total cost. But the lawyer works for both the lender and I, and I believe he represents more the interests of the lender.
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