Redemption, Clog & Priorities — KSLU Property Law Notes

Redemption, Clog & Priorities

flowchart TD
    A["Right of REDEMPTION (s.60)"]:::root
    A --> B["Statutory right — cannot be<br/>contracted away"]:::leaf
    A --> C["Any CLOG / fetter on redemption<br/>is VOID"]:::no
    A --> D["Clog examples: long postponement,<br/>'mortgage becomes sale' on default,<br/>collateral advantage after redemption"]:::no
    A --> E["Right of FORECLOSURE (s.67) —<br/>the mortgagee's converse remedy"]:::leaf

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The right of redemption (s.60) — “the very soul of a mortgage” — entitles the mortgagor, on payment of the mortgage money, to get back his property and the title deeds. It is a statutory right that cannot be contracted away; any clause that bars, fetters or unreasonably postpones redemption is a clog and is void. Where one mortgagee holds several properties and another holds only some, marshalling (s.81) and contribution (s.82) adjust the burden so the prior mortgagee’s recovery does not unfairly defeat the later one. A charge (s.100) — unlike a mortgage — creates no transfer of interest, only a security over property for payment of money, and does not bind a transferee for value without notice.