(a) You are selling your home, which has a large mortgage with favourable rates. Youwant to know whether a new purchaser can assume this mortgage.(i) Explain when assumption of a mortgage may occur, and also discuss whether youcould bear any liability if the mortgage is assumed.(ii) Would novation of the mortgage be a better idea? Explain what novation is, whenit may occur, and any liability you may face.(b) You are able to sell your property and now your financial advisor suggests that youshould invest your new windfall in mortgages. He lists the various types of mortgagesavailable.Discuss at least three different types of mortgages, relating their advantages anddisadvantages from a legal standpoint, in particular with respect to the securityinvolved. 4.

Since you have poted multiple questions with subparts, according to our guidelines, only the first…

(a) You are selling your home, which has a large mortgage with favourable rates. You want to know whether a new purchaser can assume this mortgage. (i) Explain when assumption of a mortgage may occur, and also discuss whether you could bear any liability if the mortgage is assumed. (ii) Would novation of the mortgage be a better idea? Explain what novation is, when it may occur, and any liability you may face.

(a) You are selling your home, which has a large mortgage with favourable rates. You want to know whether a new purchaser can assume this mortgage. (i) Explain when assumption of a mortgage may occur, and also discuss whether you could bear any liability if the mortgage is assumed. (ii) Would novation of the mortgage be a better idea? Explain what novation is, when it may occur, and any liability you may face.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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