Determining priorities in real property mortgages — as between unregistered mortgages

There are different rules when determining priorities in real property mortgages as between unregistered mortgages. This guidance note explains that priorities between equitable mortgages are determined according to two rules:

• • the first is that priority goes to whichever interest enjoys the greatest equity; and
• • the second is that if the equities are equal, the interest created first in time has priority (from the Latin phrase that some legal practitioners would have come across, “qui prior est in tempore, potior est in jure”).

These two rules are then further explored with illustrative examples and case law, accompanied by practice tips.

See Determining priorities in real property mortgages — as between unregistered mortgages.