Form and effect of mortgages and charges
68.—(1) Registered land may be mortgaged to secure payment of a debt by an instrument of mortgage in the approved form.(2) Registered land may be charged to secure payment of a rentcharge, annuity or other periodical sum, or of any money other than a debt, by an instrument of charge in the approved form.
(3) A mortgage does not operate as a transfer of the land mortgaged, but has effect as a security only.
(4) There may be included in an instrument of charge such covenants or provisions as the parties think fit for disposing of the moneys which may arise on the exercise by the chargee of the chargee’s power of sale, either by setting aside the proceeds of sale or part thereof on investment to meet future periodical payments, or by payment to the chargee of such proceeds or part thereof being the estimated capital value of the chargee’s interest, or otherwise.
—(1) Registered land may be mortgaged to secure payment of a debt by an instrument of mortgage in the approved form.
(2) Registered land may be charged to secure payment of a rentcharge, annuity or other periodical sum, or of any money other than a debt, by an instrument of charge in the approved form.
(3) A mortgage does not operate as a transfer of the land mortgaged, but has effect as a security only.
(4) There may be included in an instrument of charge such covenants or provisions as the parties think fit for disposing of the moneys which may arise on the exercise by the chargee of the chargee’s power of sale, either by setting aside the proceeds of sale or part thereof on investment to meet future periodical payments, or by payment to the chargee of such proceeds or part thereof being the estimated capital value of the chargee’s interest, or otherwise.
Application of Conveyancing and Law of Property Act 1886
69.—(1) The provisions of Part 4 of the Conveyancing and Law of Property Act 1886 apply, with the necessary modifications, to mortgages and charges registered under the provisions of this Act.(2) In every mortgage of registered land (unless a contrary intention is expressed), there is deemed to be included the covenant and proviso implied by section 31 of the Conveyancing and Law of Property Act 1886.
(3) For the purposes of this section, and without in any way limiting its generality, unless the context or subject matter otherwise indicates or requires, where used in the Conveyancing and Law of Property Act 1886 —“conveyance” includes an instrument of transfer of registered land;
“deed” includes any instrument registered under this Act;
“mortgage” includes a mortgage or a charge registered under this Act, and “mortgagor” and “mortgagee” have corresponding meanings;
“reconveyance” includes a discharge in the approved form.
(4) To the extent to which any provision of the Conveyancing and Law of Property Act 1886 is inconsistent with any provision of this Act, the provisions of this Act prevail.
—(1) The provisions of Part 4 of the Conveyancing and Law of Property Act 1886 apply, with the necessary modifications, to mortgages and charges registered under the provisions of this Act.
(2) In every mortgage of registered land (unless a contrary intention is expressed), there is deemed to be included the covenant and proviso implied by section 31 of the Conveyancing and Law of Property Act 1886.
(3) For the purposes of this section, and without in any way limiting its generality, unless the context or subject matter otherwise indicates or requires, where used in the Conveyancing and Law of Property Act 1886 —“conveyance” includes an instrument of transfer of registered land;
“deed” includes any instrument registered under this Act;
“mortgage” includes a mortgage or a charge registered under this Act, and “mortgagor” and “mortgagee” have corresponding meanings;
“reconveyance” includes a discharge in the approved form.
(4) To the extent to which any provision of the Conveyancing and Law of Property Act 1886 is inconsistent with any provision of this Act, the provisions of this Act prevail.
Standard covenants and conditions applicable to mortgages
70. Where the Authority, with the approval of the Minister, has under section 172 made rules to prescribe standard covenants and conditions which are to apply to mortgages, the prescribed covenants and conditions are from the date of operation of the relevant rule deemed incorporated in mortgages made on or after that date unless varied or negatived by express provision in the mortgage.
Submortgages
71.—(1) In this section, “submortgage” means the mortgage of a mortgage and the mortgage of a charge.(2) Upon the registration of a submortgage, all acts, powers and rights which might previously have been done or exercised by the mortgagor or chargor thereunder in relation to the land may thereafter be done or exercised by the registered proprietor of the submortgage, and must not be done or exercised by the mortgagor or chargor thereunder during the currency of the submortgage.
(3) A submortgage does not affect the rights or liabilities of a proprietor of the land who has not been given notice thereof.
—(1) In this section, “submortgage” means the mortgage of a mortgage and the mortgage of a charge.
(2) Upon the registration of a submortgage, all acts, powers and rights which might previously have been done or exercised by the mortgagor or chargor thereunder in relation to the land may thereafter be done or exercised by the registered proprietor of the submortgage, and must not be done or exercised by the mortgagor or chargor thereunder during the currency of the submortgage.
(3) A submortgage does not affect the rights or liabilities of a proprietor of the land who has not been given notice thereof.
Custody of documents of title
72. A first mortgagee is, as between the mortgagee and the mortgagor, entitled to custody of the documents of title to the mortgaged land so long as any liability under the mortgage subsists, but upon a request by the mortgagor, and upon payment of the mortgagee’s proper costs and expenses, the mortgagee must produce such documents of title at the Land Titles Registry to allow the registration of any subsequent mortgage which is not prohibited by the terms of the prior mortgage, or of any other authorised dealing by the mortgagor.[8/2014]
Transfers made in exercise of power of sale
73.—(1) The Registrar must register in the manner prescribed by section 37 any transfer in the approved form by a mortgagee or chargee made in exercise of a power of sale, without being concerned to inquire whether default has occurred, or whether notice has been given, or whether the power was otherwise properly or regularly exercised.(2) Upon registration of such a transfer, the interest of the mortgagor or chargor as described therein passes to and vests in the transferee freed and discharged from all liability on account of —(a)
that mortgage or charge;
(b)
any mortgage or charge registered subsequent thereto;
(c)
any lease registered subsequent to the mortgage or charge mentioned in paragraph (a) and which is not binding on the transferor; and
(d)
any interest which is registered or notified subsequent to the mortgage or charge mentioned in paragraph (a) (including any interest claimed under a caveat) and which is not binding on the transferor.
—(1) The Registrar must register in the manner prescribed by section 37 any transfer in the approved form by a mortgagee or chargee made in exercise of a power of sale, without being concerned to inquire whether default has occurred, or whether notice has been given, or whether the power was otherwise properly or regularly exercised.
(2) Upon registration of such a transfer, the interest of the mortgagor or chargor as described therein passes to and vests in the transferee freed and discharged from all liability on account of —(a)
that mortgage or charge;
(b)
any mortgage or charge registered subsequent thereto;
(c)
any lease registered subsequent to the mortgage or charge mentioned in paragraph (a) and which is not binding on the transferor; and
(d)
any interest which is registered or notified subsequent to the mortgage or charge mentioned in paragraph (a) (including any interest claimed under a caveat) and which is not binding on the transferor.
Application of proceeds of sale
74.—(1) The money received by a mortgagee who has exercised the mortgagee’s power of sale, after discharge of prior encumbrances to which the sale is not made subject (if any), or after payment into court under the Conveyancing and Law of Property Act 1886 of a sum to meet any prior encumbrances, must be held by the mortgagee on trust to be applied —(a)
firstly, in payment of all costs and expenses properly incurred as incidental to the sale or any attempted sale, or otherwise;
(b)
secondly, in discharge of the mortgage money, interest and costs, other money and liability (if any) secured by the mortgage; and
(c)
thirdly, in payment of subsequent mortgages and charges (if any) in the order of their priority,
and the residue of the money so received must be paid to the person who appears from the land‑register to be entitled to the mortgaged property or to be authorised to give receipts for the proceeds of the sale thereof.
(2) The money received by a chargee who has exercised the chargee’s power of sale, after discharge of prior encumbrances to which the sale is not made subject (if any), must be held by the chargee on trust to be applied —(a)
firstly, in payment of all costs and expenses properly incurred by the chargee as incident to the sale or any attempted sale, or otherwise;
(b)
secondly, in accordance with any express provision in the instrument of charge (as authorised by section 68(4)) for disposing of such money and, in the absence of any express provision, in discharge of the money due to the chargee at the date of the sale; and
(c)
thirdly, in payment of subsequent mortgages and charges (if any) in the order of their priority,
and the residue of the money so received must be paid to the person who appears from the land‑register to be entitled to the charged property or to be authorised to give receipts for the proceeds of the sale thereof.
(3) Where by this section a mortgagee or chargee is required to account to a subsequent chargee for money arising on a sale, such money must be paid or applied in accordance with the express provision (if any) in the instrument of charge for disposing of such money, and, in the absence of express provision, in discharge of the money due to the chargee at the date of the sale.
—(1) The money received by a mortgagee who has exercised the mortgagee’s power of sale, after discharge of prior encumbrances to which the sale is not made subject (if any), or after payment into court under the Conveyancing and Law of Property Act 1886 of a sum to meet any prior encumbrances, must be held by the mortgagee on trust to be applied —(a)
firstly, in payment of all costs and expenses properly incurred as incidental to the sale or any attempted sale, or otherwise;
(b)
secondly, in discharge of the mortgage money, interest and costs, other money and liability (if any) secured by the mortgage; and
(c)
thirdly, in payment of subsequent mortgages and charges (if any) in the order of their priority,
and the residue of the money so received must be paid to the person who appears from the land‑register to be entitled to the mortgaged property or to be authorised to give receipts for the proceeds of the sale thereof.
(2) The money received by a chargee who has exercised the chargee’s power of sale, after discharge of prior encumbrances to which the sale is not made subject (if any), must be held by the chargee on trust to be applied —(a)
firstly, in payment of all costs and expenses properly incurred by the chargee as incident to the sale or any attempted sale, or otherwise;
(b)
secondly, in accordance with any express provision in the instrument of charge (as authorised by section 68(4)) for disposing of such money and, in the absence of any express provision, in discharge of the money due to the chargee at the date of the sale; and
(c)
thirdly, in payment of subsequent mortgages and charges (if any) in the order of their priority,
and the residue of the money so received must be paid to the person who appears from the land‑register to be entitled to the charged property or to be authorised to give receipts for the proceeds of the sale thereof.
(3) Where by this section a mortgagee or chargee is required to account to a subsequent chargee for money arising on a sale, such money must be paid or applied in accordance with the express provision (if any) in the instrument of charge for disposing of such money, and, in the absence of express provision, in discharge of the money due to the chargee at the date of the sale.
Entry into possession
75.—(1) If default is made in payment of the interest, principal or other money, secured by a mortgage or charge, or in payment of any part thereof, the mortgagee or chargee is, as against the mortgagor or chargor and those claiming through or under the mortgagor or chargor, entitled to enter into possession of the mortgaged or charged land and to receive the rents and profits thereof.(2) The power of entry into possession conferred by this section must not be exercised until one month’s notice has been given to the mortgagor or chargor.
(3) Subject to this section, a mortgagee or chargee has the like remedies for obtaining possession of the mortgaged or charged land as are by law given to a landlord against a lessee or tenant whose term is expired or whose rent is in arrear.
(4) Where a mortgagee or chargee has given notice of the mortgagee’s or chargee’s intention to enter into receipt of the rents and profits of the mortgaged or charged land to the tenant or other person liable to pay or account for them, the receipt in writing of the mortgagee or chargee is sufficient discharge for any rents and profits therein expressed to be received, and any person paying them is not bound and need not be concerned to inquire as to any default or other circumstance affecting the right of the mortgagee or chargee to give such notice beyond the fact of the mortgagee or chargee being duly registered as mortgagee or chargee of the land.
—(1) If default is made in payment of the interest, principal or other money, secured by a mortgage or charge, or in payment of any part thereof, the mortgagee or chargee is, as against the mortgagor or chargor and those claiming through or under the mortgagor or chargor, entitled to enter into possession of the mortgaged or charged land and to receive the rents and profits thereof.
(2) The power of entry into possession conferred by this section must not be exercised until one month’s notice has been given to the mortgagor or chargor.
(3) Subject to this section, a mortgagee or chargee has the like remedies for obtaining possession of the mortgaged or charged land as are by law given to a landlord against a lessee or tenant whose term is expired or whose rent is in arrear.
(4) Where a mortgagee or chargee has given notice of the mortgagee’s or chargee’s intention to enter into receipt of the rents and profits of the mortgaged or charged land to the tenant or other person liable to pay or account for them, the receipt in writing of the mortgagee or chargee is sufficient discharge for any rents and profits therein expressed to be received, and any person paying them is not bound and need not be concerned to inquire as to any default or other circumstance affecting the right of the mortgagee or chargee to give such notice beyond the fact of the mortgagee or chargee being duly registered as mortgagee or chargee of the land.
Foreclosure of mortgages
76.—(1) In the interpretation of any law relating to foreclosure of mortgage, unless repugnant to the context —(a)
a mortgagor of registered land who is in default is deemed to have an equity of redemption; and
(b)
a mortgagee of registered land has the same right to apply to the court for an order for foreclosure as if the land were not under the provisions of this Act and the mortgagee held a legal estate therein.
(2) Where the court has made an order for foreclosure upon an application made by a mortgagee of registered land, the mortgagee in whose favour the foreclosure order is made must lodge an application in the approved form together with a duly certified copy of the court order with the Registrar for the purpose of registering the court order under this Part.[8/2014]
(3) The Registrar upon being satisfied that the court order is in order for registration must register the order by entering a memorial of the court order in the relevant folio.
(4) The court order when so entered in the land‑register has the effect of vesting in the applicant mortgagee all the estate and interest of the mortgagor in the land referred to in the court order freed from all right and equity of redemption on the part of the mortgagor, and freed and discharged from all liability on account of any mortgage, charge or other interest, registered subsequently thereto except such leases or other interests as may be binding on the applicant mortgagee.
—(1) In the interpretation of any law relating to foreclosure of mortgage, unless repugnant to the context —(a)
a mortgagor of registered land who is in default is deemed to have an equity of redemption; and
(b)
a mortgagee of registered land has the same right to apply to the court for an order for foreclosure as if the land were not under the provisions of this Act and the mortgagee held a legal estate therein.
(2) Where the court has made an order for foreclosure upon an application made by a mortgagee of registered land, the mortgagee in whose favour the foreclosure order is made must lodge an application in the approved form together with a duly certified copy of the court order with the Registrar for the purpose of registering the court order under this Part.[8/2014]
(3) The Registrar upon being satisfied that the court order is in order for registration must register the order by entering a memorial of the court order in the relevant folio.
(4) The court order when so entered in the land‑register has the effect of vesting in the applicant mortgagee all the estate and interest of the mortgagor in the land referred to in the court order freed from all right and equity of redemption on the part of the mortgagor, and freed and discharged from all liability on account of any mortgage, charge or other interest, registered subsequently thereto except such leases or other interests as may be binding on the applicant mortgagee.
Right to discharge
77.—(1) Upon fulfilling the obligations under a registered mortgage or charge, a mortgagor or chargor is entitled, subject to section 22 of the Conveyancing and Law of Property Act 1886, to obtain from the mortgagee or chargee a registrable discharge.[8/2014]
(2) A mortgagor or chargor is not bound to account to any person who has acquired an interest in the mortgage or charge unless the transfer or other instrument whereby that person became entitled has been registered and the mortgagor or chargor has been notified in writing of its registration.
(3) For the purpose of enforcing the right to obtain a discharge conferred by this section, the mortgagor is deemed to have an equity of redemption.
—(1) Upon fulfilling the obligations under a registered mortgage or charge, a mortgagor or chargor is entitled, subject to section 22 of the Conveyancing and Law of Property Act 1886, to obtain from the mortgagee or chargee a registrable discharge.[8/2014]
(2) A mortgagor or chargor is not bound to account to any person who has acquired an interest in the mortgage or charge unless the transfer or other instrument whereby that person became entitled has been registered and the mortgagor or chargor has been notified in writing of its registration.
(3) For the purpose of enforcing the right to obtain a discharge conferred by this section, the mortgagor is deemed to have an equity of redemption.
Discharge of mortgages and charges
78.—(1) The parties may agree to the discharge of —(a)
the whole of the mortgaged or charged land from a specified part of the principal sum or other money thereby secured;
(b)
a part of the mortgaged or charged land from the whole of the principal sum or other money thereby secured; or
(c)
the whole of the mortgaged or charged land from the whole of the principal sum or other money thereby secured, but without discharging the mortgagor or chargor from any personal obligation to pay that money.
(2) A discharge of mortgage or charge in an approved form must be registered by entering a memorial thereof on the relevant folio whereupon the land is freed from the mortgage or charge and from all rights and powers of the mortgagee or chargee, either absolutely or to any lesser extent as expressed in the discharge.
(3) Where a discharge was executed as a separate instrument in respect of a mortgage registered prior to 1 March 1994, the Registrar shall dispense with the production of the duplicate of the relevant mortgage.
—(1) The parties may agree to the discharge of —(a)
the whole of the mortgaged or charged land from a specified part of the principal sum or other money thereby secured;
(b)
a part of the mortgaged or charged land from the whole of the principal sum or other money thereby secured; or
(c)
the whole of the mortgaged or charged land from the whole of the principal sum or other money thereby secured, but without discharging the mortgagor or chargor from any personal obligation to pay that money.
(2) A discharge of mortgage or charge in an approved form must be registered by entering a memorial thereof on the relevant folio whereupon the land is freed from the mortgage or charge and from all rights and powers of the mortgagee or chargee, either absolutely or to any lesser extent as expressed in the discharge.
(3) Where a discharge was executed as a separate instrument in respect of a mortgage registered prior to 1 March 1994, the Registrar shall dispense with the production of the duplicate of the relevant mortgage.
Satisfaction of charges
79.—(1) Upon —(a)
proof of the death of the annuitant, or of the occurrence of any other event or circumstance upon which the annuity or other money secured by a charge ceases to be payable; and
(b)
lodgment of an application in the approved form with the Registrar for the entry in the relevant folio of a notification of satisfaction of the charge,
the Registrar must, upon being satisfied that there are no substantial arrears of the annuity or other money, enter in the land‑register a notification of satisfaction, and the land is thereupon freed from the charge and from all rights and powers of the chargee, but without discharging the chargor from personal liability for any money for the payment of which the chargor has omitted to account.
(2) The Registrar may, in his or her discretion, accept a statutory declaration of the chargor, or other person having knowledge of the facts, in proof of the state of accounts between chargor and chargee.
(3) The Registrar must not enter a notification of satisfaction of a charge under this section where the money unaccounted for exceeds the sum of $500.[8/2014]
—(1) Upon —(a)
proof of the death of the annuitant, or of the occurrence of any other event or circumstance upon which the annuity or other money secured by a charge ceases to be payable; and
(b)
lodgment of an application in the approved form with the Registrar for the entry in the relevant folio of a notification of satisfaction of the charge,
the Registrar must, upon being satisfied that there are no substantial arrears of the annuity or other money, enter in the land‑register a notification of satisfaction, and the land is thereupon freed from the charge and from all rights and powers of the chargee, but without discharging the chargor from personal liability for any money for the payment of which the chargor has omitted to account.
(2) The Registrar may, in his or her discretion, accept a statutory declaration of the chargor, or other person having knowledge of the facts, in proof of the state of accounts between chargor and chargee.
(3) The Registrar must not enter a notification of satisfaction of a charge under this section where the money unaccounted for exceeds the sum of $500.[8/2014]
Tacking of further advances
80.—(1) Despite any other provision of this Act, a prior mortgagee of registered land has the right to make further advances or give further credit or accommodation to rank in priority to subsequent mortgages —(a)
if the prior mortgage expressly authorises the making of further advances, or the giving of credit in instalments or on a current, revolving or continuing account or other accommodation; or
(b)
where the prior mortgage does not expressly authorise the making of such further advances, or the giving of credit in instalments or on a current, revolving or continuing account or other accommodation, if the subsequent mortgagee agrees to such further advances being made or credit or other accommodation being given.
(2) Except as provided in this section, the right to tack does not apply to mortgages of registered land.
(3) In this section —“prior mortgage” includes a prior charge or a prior assignment which has been either secured by a mortgage or protected by a caveat registered or notified on the land‑register, as the case may be;
“prior mortgagee” includes a prior chargee or a prior assignee in whose favour an estate or interest in respect of registered land was mortgaged, charged or assigned by way of mortgage, being a mortgage or charge which is registered or notified on the land‑register or claimed under a caveat;
“subsequent mortgage” includes a subsequent charge or a subsequent assignment which has been either secured by a mortgage or protected by a caveat registered or notified on the land‑register, as the case may be; and
“subsequent mortgagee” includes a subsequent chargee or a subsequent assignee in whose favour an estate or interest in respect of registered land was mortgaged, charged or assigned by way of mortgage, being a mortgage or charge which is registered or notified on the land‑register or claimed under a caveat.
—(1) Despite any other provision of this Act, a prior mortgagee of registered land has the right to make further advances or give further credit or accommodation to rank in priority to subsequent mortgages —(a)
if the prior mortgage expressly authorises the making of further advances, or the giving of credit in instalments or on a current, revolving or continuing account or other accommodation; or
(b)
where the prior mortgage does not expressly authorise the making of such further advances, or the giving of credit in instalments or on a current, revolving or continuing account or other accommodation, if the subsequent mortgagee agrees to such further advances being made or credit or other accommodation being given.
(2) Except as provided in this section, the right to tack does not apply to mortgages of registered land.
(3) In this section —“prior mortgage” includes a prior charge or a prior assignment which has been either secured by a mortgage or protected by a caveat registered or notified on the land‑register, as the case may be;
“prior mortgagee” includes a prior chargee or a prior assignee in whose favour an estate or interest in respect of registered land was mortgaged, charged or assigned by way of mortgage, being a mortgage or charge which is registered or notified on the land‑register or claimed under a caveat;
“subsequent mortgage” includes a subsequent charge or a subsequent assignment which has been either secured by a mortgage or protected by a caveat registered or notified on the land‑register, as the case may be; and
“subsequent mortgagee” includes a subsequent chargee or a subsequent assignee in whose favour an estate or interest in respect of registered land was mortgaged, charged or assigned by way of mortgage, being a mortgage or charge which is registered or notified on the land‑register or claimed under a caveat.
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
