Status: Law In Force

Law of Property Act 1925 c. 20

Part III MORTGAGES, RENTCHARGES, AND POWERS OF ATTORNEY

Mortgages

This version in force from: January 1, 1926 to present

(version 1 of 1)

105. Application of proceeds of sale.

The money which is received by the mortgagee, arising from the sale, after discharge of priorincumbrances to which the sale is not made subject, if any, or after payment into court under this Actof a sum to meet any prior incumbrance, shall be held by him in trust to be applied by him, first, inpayment of all costs, charges, and expenses properly incurred by him as incident to the sale or anyattempted sale, or otherwise; and secondly, in discharge of the mortgage money, interest, and costs,and other money, if any, due under the mortgage; and the residue of the money so received shall bepaid to the person entitled to the mortgaged property, or authorised to give receipts for the proceedsof the sale thereof.1 2

1.Act applied by Building Act 1984 (c. 55), s. 107(2), Land Registration Act 1925 (c. 21), ss. 36, 38, 69(3), S.R. & O, 1925/1093, Agriculture(Miscellaneous Provisions) Act 1941 (c. 50), s. 8(4), Finance Act 1949 (c. 47), s. 40(4)(b), Highways Act 1959 (c. 25), s. 181(3) andHousing Act 1964 (c. 56) s. 80(5); extended by Public Health Act 1936 (c. 49), s. 291(4) Words of enactment omitted under authority ofStatute Law Revision Act 1948 (c. 62), s. 3

2.Certain provisions of Part III applied by Agriculture (Miscellaneous Provisions) Act 1941 (c. 50), s. 8(4), Weeds Act 1959 (c. 54), s. 3(3)and Leasehold Reform Act 1967 (c. 88), s. 19(8)

Crown Copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland

Subject: Real property

Keywords: Mortgagees' powers and duties; Proceeds of sale; Sale of property

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