In the year 1989, a statute was passed, to ensure that the buying and selling of land and property was brought upto date.

This statute removed some items which had been used for years but added some new rules for the signing of documents.

Where contracts or other dispositions of land are to be made the rules are quite clear, but are not being carried out correctly by your conveyancing solicitor and they do not provide you with the correct advice as to what is actually happening in the transaction.

Whilst they are getting paid by the bank to carry out the whole transaction in their favour they are omitting a duty of care to you the purchaser.

http://www.legislation.gov.uk/ukpga/1989/34/contents

http://www.legislation.gov.uk/ukpga/1989/34/section/2

(1)A contract for the sale or other disposition of an interest in land can only be made in writing and only by incorporating all the terms which the parties have expressly agreed in one document or, where contracts are exchanged, in each.

A mortgage is a type of disposition. This is referenced by the Law of Property Act 1925 in the interpretation section.

http://www.legislation.gov.uk/ukpga/Geo5/15-16/20/section/205

ii)“Conveyance” includes a mortgage, charge, lease, assent, vesting declaration, vesting instrument, disclaimer, release and every other assurance of property or of an interest therein by any instrument, except a will; “convey” has a corresponding meaning; and “disposition” includes a conveyance and also a devise, bequest, or an appointment of property contained in a will; and “dispose of” has a corresponding meaning;

The meaning of the word “includes” equal: to mean or comprise

A mortgage from the same section is:

(xvi)“Mortgage” includes any charge or lien on any property for securing money or money’s worth; “legal mortgage” means a mortgage by demise or subdemise or a charge by way of legal mortgage and “legal mortgagee” has a corresponding meaning; “mortgage money” means money or money’s worth secured by a mortgage; “mortgagor” includes any person from time to time deriving title under the original mortgagor or entitled to redeem a mortgage according to his estate interest or right in the mortgaged property; “mortgagee” includes a chargee by way of legal mortgage and any person from time to time deriving title under the original mortgagee; and “mortgagee in possession” is, for the purposes of this Act, a mortgagee who, in right of the mortgage, has entered into and is in possession of the mortgaged property; and “right of redemption” includes an option to repurchase only if the option in effect creates a right of redemption;

Going back to LPA MP 1989.

(3)The document incorporating the terms or, where contracts are exchanged, one of the documents incorporating them (but not necessarily the same one) must be signed by or on behalf of each party to the contract.

Therefore it can be seen that the “document” incorporating the terms of the mortgage MUST be signed by on and behalf of each party.

 

more info to update required

 

 

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