Section 18 Mortgage and Property Law of Lagos State

Section 18 of the Mortgage and Property Law of Lagos State 2010 is about Equitable mortgage. It provides as follows:

(1) As from the commencement of this Law, an equitable mortgage of a right of occupancy shall not be created by a mere deposit of title or charge on a property except it is accompanied by an agreement to create a legal mortgage in favour of the mortgagee or in case of mortgage of an equitable interest in a property by an assignment of an equitable interest in favour of the mortgagee with a provision for cesser on redemption.

(2) Provided that in a case of mortgage by deposit of title or charge accompanied by an agreement to create a legal mortgage, a mortgagee may within thirty (30) days by an Originating Summons bring an action in court requiring the mortgagor to execute a legal mortgage in his favour and thereafter exercise the powers of legal mortgagee under this Law.