Week 6 BUS Essay Example | Topics and Well Written Essays - 500 words

Week 6 BUS - Essay Example This condition is fundamental in case of any litigation. A mortgage refers to a document given by a lender of property, especially land, in order to create a lien on the particular piece of land. A mortgage involves two parties to the mortgage contract. These are the mortgagee and the mortgagor. The mortgagor is the borrower while the mortgagee is the lender of the property in quest. A mortgage contract also involves mortgage transfers, which are contacts involving banks. There are conditions, which must be fulfilled before a mortgage contract is enforceable in law are that the contract must be in writing. The particular document, which is used in the transfer of a mortgage, is called an assignment of a mortgage. According to Frank and Bahaudin, the mortgage contract gives the mortgagee the right to dispose the property in the event the mortgagor fails to cover the property debt (47). In a mortgage contract, either the mortgagee or the mortgagor with regard to the theory applied can hold the title of the property. In the case of a title t heory state, a borrower transfers the title to the lender over the period of the loan. Conversely, a lien theory state is a scenario in which the buyer of the mortgage holds the title of the property in quest. A mortgage is different from a deed on the issue of foreclosure. The document relating to the closure of escrow differentiates a mortgage from a deed. A covenant entails a pledge of property with an aim of securing a loan. In this regard, it is almost similar to a mortgage. A covenant involves a trust or and a beneficiary. In this case, the tutor is the borrower while the beneficiary is the lender of the property. The beneficiary is also known as a trustee, who holds legal title to the contractual property. The beneficiary helps in the selling of property, especially at auctions. The trustee can resort to the move when the borrower