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Guide to Buying Property in Grenada: What does it mean to obtain a mortgage to finance the purchase

Many persons find it financially wise or necessary to borrow monies to acquire property, and this borrowing is secured by something called a mortgage.

A mortgage to a lender is mostly done by way of a legal mortgage, by signing a deed prepared by an attorney-at-law admitted to practice in Grenada to transfer the legal title to the property to the lender.

In a few instances, an equitable mortgage might be enough, which is done by depositing your original deed(s) with the lender as a security document to strengthen you promise to repay the borrowing.

When you give a legal mortgage, your interest remaining in the property is called “the equity of redemption”, that is, an interest to have the legal title re-transferred to you, by way of deed, once you repay the indebtedness.

Where you have given a legal mortgage, it is not enough for you to simply collect your original deed(s) from the lender when you repay in full.  You must also engage an attorney-at-law admitted to practice in Grenada to prepare a deed called a reconveyance.

Only if the mortgage had been equitable would it suffice for you to simply collect your deed(s) from the lender.

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