What is the duty owed by a mortgagee to a mortgagor?
Alberta, Canada
The following excerpt is from Unican Development Corporation Limited v. Settlers Savings and Mortgage Corporation, 1984 CanLII 1161 (AB QB):
The first known decision on the duty owed by a mortgagee to a mortgagor is contained in the case of Wragg v. Denham (1836), 2 Y. & C. Ex. 117, 160 E.R. 335, where on a bill for redemption of mortgaged property in the mortgagee’s possession, it was held that the mortgagee had to account for all loss and damage occasioned by gross negligence in respect of bad cultivation and non-repair of the mortgaged premises.
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