A developer wishes to create a strata subdivision but discovers an existing mortgage over the land. What must occur before strata titles can be issued?
Correct Answer
B) The mortgage must be discharged, or the mortgagee must consent, before the plan is registered.
Before a strata plan can be registered, any existing mortgage over the land must either be discharged or written consent must be obtained from the mortgagee. This protects the mortgagee's security interest and prevents the subdivision from affecting their rights without consent.
Why This Is the Correct Answer
A registered mortgagee's interest cannot be altered without its involvement, so before the strata plan is registered the mortgage must be discharged or the mortgagee must consent. With consent, the mortgage then extends over the new lots.
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