Prepared by Timothy R. Maher, Esq.
Presented by Richard A. Saliterman
There is a saying: “there are those who own, and there are those who rent.” While this saying suggests there is a great difference between mortgagors and lessees, one would be foolish to infer from that that there is a great difference between mortgages and leases. While there are significant differences between these legal constructs, there are, nonetheless, many similarities between them. Both of them are, in essence, based on simple contract law. Neither mortgages nor leases transfer title to the subject property. Both of them have evolved significantly from their respective common law roots and both of them are now heavily regulated by statute. As will be discussed more fully herein, when it comes to defaults on leases and mortgages, the remedies available to lessors and mortgagees respectively are quite analogous.
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2005, Real Estate Lending Requirements and Loan Documentation PDF