Section 21 Mortgage and Property Law of Lagos State (MPL) 2010

Section 21 of the Mortgage and Property Law of Lagos State 2010 is about Realisation of equitable charges by the Court. It provides as follows:

(1) Where an order for sale is made by the Court in reference to an equitable mortgage on land created pursuant to section 18 of this Law (not secured by a legal mortgage) the court may, in favour of a purchaser, make a vesting order conveying the land or may appoint a person to convey the land or create and vest in the mortgagee a legal term of years absolute to enable him carry out the sale, as the case may require, in like manner as if the mortgage had been create by deed by way of legal mortgage in accordance with the provisions of this Law, but without prejudice to any encumbrance having priority to the equitable mortgage unless the encumbrance consents to the sale.

(2) In any action, whether for foreclosure, or for redemption, or for sale, or for the raising and payment in any manner of mortgage money, the Court on the request of the mortgagee, or of any person interested either in the mortgage money or in
the right of redemption, and notwithstanding that –

(a) any other person dissents; or

(b) the mortgagee or any person so interested does not appear in the action, and without allowing any tie for redemption or (or payment of nay mortgage money), may direct a sale of the mortgaged property, in accordance with the terms of
the contract or on such terms as it things fit, including the deposit in court of a sum equal to onethird of the known value of the mortgaged property at the time of making the order for sale.

(3) But, in an action brought by a person interested in the right of redemption and seeking a sale, the Court shall, on the application of any defendant, direct the claimant and or the person interested to give security for costs on an actual
indemnity basis.

(4) In any case within this section the Court may, if it things fit, direct a sale without previously determining the priorities of encumbrances.

(5) This section applies to action brought either before or after the commencement of this Law.

(6) In this section “mortgaged property” includes the estate or interest which a mortgagee would have had power to convey if the statutory power of sale were applicable.

(7) For the purposes of this section the Court may, in favour of a purchaser, make a vesting order conveying the mortgaged property, or appoint a person to do so, subject or not to any encumbrance as the Court may think fit; or in the case of an
equitable mortgage, may create and vest a mortgage term in the mortgagee to enable him to carry out the sale as if the mortgage had been by deed by way of legal mortgage.

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