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Legal Terms
Term: equitable mortgage
1.
Where a mortgage is created but the mortgagee gets no legal estate, the mortage is an equitable mortgage. This will occur either because the mortgagor has only an equitable interest or because the mortgage is not created with the formalities required for a legal mortgage.
Usage: A mortgage was not signed on behalf of a mortgagor resulting in an equitable mortgage.
Related Words: equity; equitable owner; legal mortgage; mortgage.
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