If an owner mortgages two properties to a lender and then sells one property to a buyer, the buyer has the right to demand that the lender's debt be paid off using the non-sold property first. This is known as the right of marshalling. It can be exercised unless the original contract between the owner and lender explicitly stated there would be no future right of marshalling for subsequent property buyers.
If an owner mortgages two properties to a lender and then sells one property to a buyer, the buyer has the right to demand that the lender's debt be paid off using the non-sold property first. This is known as the right of marshalling. It can be exercised unless the original contract between the owner and lender explicitly stated there would be no future right of marshalling for subsequent property buyers.
If an owner mortgages two properties to a lender and then sells one property to a buyer, the buyer has the right to demand that the lender's debt be paid off using the non-sold property first. This is known as the right of marshalling. It can be exercised unless the original contract between the owner and lender explicitly stated there would be no future right of marshalling for subsequent property buyers.
If an owner mortgages two properties to a lender and then sells one property to a buyer, the buyer has the right to demand that the lender's debt be paid off using the non-sold property first. This is known as the right of marshalling. It can be exercised unless the original contract between the owner and lender explicitly stated there would be no future right of marshalling for subsequent property buyers.
If the owner of two or more properties mortgages them to one person
and then sells one or more of the properties to another person, the buyer is, in the absence of the contract to the contrary, entitled to have the mortgaged-debt satisfied out of the property or the properties not sold to him.
Meaning thereby, agar A ke pass do properties hain or ek jiska naam x
ahi uski kimat 50 lakh hai or dusri Y iski kimat 40 lakh hai. Ab A ,B ko abni don properties mortgage kar deta hai or B se 45 lakhs le leta hai , he further sells the property to C for 42laks . Now, c has the right of marshalling against B. HE can ask b to make the pament from property y in order to recover his dept. This can be only claimed if B has not explicitly mentioned in his contract about any further marshalling or mortagage of the of properties sold to him by A
When marshalling cannot be exercised
1. When buyer right> subsequent mortgagee right ( the property
coming in B share is insufficient to fulfill his dept) 2. When there has been already any agreement between the first mortgagor and the mortagagee abt no future marshalling 3. h