The conversation between human and AI assistant.
What is the difference between a registered mortgage and an equitable mortgage?
How does an equitable mortgage work then?
Well, with an equitable mortgage, the lender doesn't have a legal claim over the property. Instead, they have a kind of lien over it – this means that they have a right to sell the property to recover their money if the borrower defaults. However, this right is not as strong as the legal claim that a lender has with a registered mortgage.