Asked by
my nga tran ngo
on Dec 18, 2024
Verified
Harlan owns a rural farm in Nova Scotia. There is a mortgage on the farm in the amount of $100,000. The farm has a house, a barn and two machine sheds. He obtained a mortgage from the bank. Harlan decided that the house was too expensive to heat in the winter, so he turned the heat off and moved into one of the smaller machine sheds. All of the pipes burst. Which of the mortgage covenants were breached?
A) Quiet possession
B) Not to commit waste
C) Acceleration clause
D) Equity of redemption
E) Maintenance and improvement
Not to Commit Waste
A principle obligating a party to avoid causing damage or destruction to property.
Quiet Possession
The right of a tenant or property owner to use and enjoy their property without interference.
Acceleration Clause
A provision in a loan or mortgage agreement allowing the lender to demand payment of the entire loan balance under certain conditions.
- Understand the responsibilities undertaken by the mortgagor and the recourse available to the mortgagee in a default scenario.
Verified Answer
MC
Learning Objectives
- Understand the responsibilities undertaken by the mortgagor and the recourse available to the mortgagee in a default scenario.