Pari Passu

[akodwo]

where you have a pari passu mortgage and one of the mortgagee obtains judgment first in time ....is the mortgagee judgement creditor obliged to share what he realises from execution with the other mortgagees or is rather that what is held over after payment to the mortgagee creditor that which is shared parri passu. in othe words do you have priority if you obtain prior judgment over other mortgagees?

 

[Peppermint]

This site is primarily for US Law only. I doubt we have any responders here who know anything about such mortages in Africa, so don't be surprised if you don't get any responses.

 

[dee_dub]

To the extent your jurisdiction shares common law principles, the answer is no, obtaining judgment first in time does not give one mortgagee in pari passu any priority claim to the proceeds from the sale of the property. Pari passu mortgages rank equal in priority.

Practically, I can't imagine this ever becoming an issue; usually when you sell a property you have to clear title. This means that when the first mortgagee forecloses on and sells the property, they'll need to provide clear title to the purchaser, so they'll need to wipe off the other pari passu mortgagee's mortgage, presumably by paying it out. In some very rare circumstances I guess the purchaser might take the title subject to the second mortgage - but then the second mortgagee still has their security in the property.