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PROPERTY LAW ACT 1969 - SECT 55

PROPERTY LAW ACT 1969 - SECT 55

55 .         Sale of mortgaged property in action for redemption or foreclosure

        (1)         A person entitled to redeem mortgaged property may have a judgment or order for sale instead of for redemption in an action brought by him either for redemption alone, or for sale alone, or for sale or redemption in the alternative.

        (2)         In an action, whether for foreclosure, or for redemption, or for sale, or for the raising and payment in any manner of mortgage money, the Court, on the request of the mortgagee, or of any person interested either in the mortgage money or in the right of redemption, and, notwithstanding that —

            (a)         any other person dissents; or

            (b)         the mortgagee or any person so interested does not appear in the action,

                and without allowing any time for redemption or for payment of any mortgage money, may, if it thinks fit, direct a sale of the mortgaged property, on such terms, subject to subsection (3), as it thinks fit, including the deposit in Court of a reasonable sum fixed by the Court to meet the expenses of sale and to secure performance of the terms.

        (3)         In an action brought by a person interested in the right of redemption and seeking a sale, the Court may, on the application of any defendant, direct the plaintiff to give such security for costs as the Court thinks fit, and may give the conduct of the sale to any defendant, and may give such directions as it thinks fit respecting the costs of the defendants or any of them.

        (4)         In any case within this section the Court may, if it thinks fit, direct a sale without previously determining the priorities of encumbrances.

        (5)         This section applies to actions brought either before or after the coming into operation of this Act.

        (6)         In this section mortgaged property includes the estate or interest that a mortgagee would have had power to convey if the statutory power of sale were applicable.

        (7)         For the purpose of this section the Court may, in favour of a purchaser, make a vesting order conveying the mortgaged property, or appoint a person to do so, subject or not to any encumbrance, as the Court thinks fit; or, in the case of an equitable mortgage, may create and vest in the mortgagee a legal estate to enable him to carry out the sale in like manner as if the mortgage had been made by deed by way of legal mortgage.