Types of legal mortgage
Mortgage by demise and by legal charge are the two legally recognized mortgages. In the former, the creditor automatically becomes the owner of the mortgaged property till the loan is completely repaid. The conveyance of the property to the creditor is handled under the condition that the property will be returned on redemption of the loan amount. This type of legal mortgage is less common and in many countries no longer available.
In a mortgage by legal charge, technically the debtor remains the legal owner of the property, with the creditor gaining rights over it to enable the enforcement of the required and calculated security. The right may include the right to take possession of the property or the right to sell it. A mortgage by legal charge is almost always recorded in a public register. Mortgage lenders run title searches to make sure that there are no previous mortgages registered on the said property, especially to eliminate ones with higher priority.