Singapore legislation
Clause 9
Clause 9
Surrender of title to land freed and discharged from subsisting mortgage
(1)
Where the President accepts the surrender of the title to land of different tenure for the reissue of one or more fresh titles of one type of tenure freed and discharged from any subsisting mortgage, the person entitled to be issued with the fresh title or titles in respect of the whole or part of the land surrendered may, with the consent of the Collector and the Registrar —
in the case where the surrender is in respect of unregistered land, create a mortgage in respect of his right, title and interest in the unregistered land prior to the issue of the fresh title by the President with the intent that the mortgage shall pro tanto be in substitution for a mortgage which was subsisting prior to the surrender of the unregistered land; or
in the case where the surrender is in respect of registered land, create a mortgage in respect of his right, title and interest in the registered land prior to the issue of a fresh title by the President with the intent that the mortgage shall pro tanto be in substitution for a mortgage which was subsisting prior to the surrender of the registered land.
(2)
The following provisions shall apply to any mortgage created in respect of unregistered land in accordance with subsection (1)(a):
notwithstanding any other provision of this Act, the mortgage created in accordance with subsection (1)(a) may be registered under the provisions of the Registration of Deeds Act [Cap. 269];
where the mortgage has been registered, provisionally or otherwise, under the Registration of Deeds Act [Cap. 269], the person claiming as mortgagee under the mortgage may lodge an application with the Registrar for that mortgage to be notified on the relevant folio when created, and the Registrar shall, if satisfied that the application is in order, pending the creation of the folio, record the application in a provisional register-book, and thereupon the mortgage shall constitute a legal mortgage to the extent that the mortgagee of the mortgage may exercise the same powers as if he were a legal mortgagee;
where the Registrar has recorded the application for the notification of the mortgage on the land-register pursuant to paragraph (b), the Registrar shall notify the mortgage on the relevant folio when created;
nothing in this section shall require the Registrar to notify any mortgage created pursuant to subsection (1)(a) on the folio when created unless an application to notify the mortgage on the land-register has been lodged with and accepted by the Registrar as being in order for notification, and except in the case of fraud a purchaser dealing with the whole or part of the land at any time after the land has been brought under this Act shall not be deemed to have notice of any mortgage which has not been notified by the Registrar on the folio when created;
an assurance dealing with a mortgage referred to in subsection (1)(a) may be made with the consent of the Collector and the Registrar of Titles and may be registered under the provisions of the Registration of Deeds Act; and
any assurance made in favour of a purchaser by the mortgagee exercising his power of sale under a mortgage created pursuant to subsection (1)(a) may, with the consent of the Collector, be registered under the provisions of the Registration of Deeds Act, and upon the acceptance by the Registrar of Deeds of the assurance for registration —
the purchaser from the mortgagee shall be deemed to be a successor in title of the right, title and interest in the land surrendered to the extent of the whole or part of the land conveyed to the purchaser by the mortgagee under the assurance and shall be bound by all the terms and obligations relating to the surrender of the whole or part of the land sold as if these terms and obligations have been made between the purchaser and the Collector; and
the fresh title shall be issued to the purchaser named in the assurance registered under the Registration of Deeds Act [Cap. 269] if the Collector acting on behalf of the President is satisfied with the right, title or interest conveyed to the purchaser by the mortgagee under the assurance.
(3)
The following provisions shall apply to any mortgage created in respect of registered land pursuant to subsection (1)(b):
pending the issue of the fresh title, the mortgagee of a substituted mortgage referred to in subsection (1)(b) may lodge with the Registrar an application to notify the substituted mortgage on the existing folio and when the application is found to be in order, the Registrar shall notify the substituted mortgage on the existing folio notwithstanding the completion of the surrender to the State; and
the substituted mortgage shall for the purposes of this section be deemed to be a mortgage registered under this Act and the provisions of Part VIII shall apply thereto.
(4)
Upon the creation of one or more folios for the land, the Registrar shall notify the substituted mortgage on the relevant folio or folios and, where applicable, cancel the previously existing folio or folios for the land.