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BUILDING SOCIETIES ACT (NORTHERN IRELAND) 1967 - SECT 36

Provisions as to sale of mortgaged property.

36.(1) Where any freehold or leasehold estate has been mortgaged to a
building society as security for an advance, and a person sells that estate in
the exercise of a power (whether statutory or express) exercisable by virtue
of the mortgage, it shall be his duty

(a)in exercising that power, to take reasonable care to ensure that the price
at which the estate is sold is the best price which can reasonably be
obtained, and

(b)within twenty-eight days from the completion of the sale, to send by
registered post or recorded delivery service to the mortgagor, at the
mortgagor's last known address, a notice containing the prescribed particulars
of the sale.

(2) In so far as any agreement relieves, or may have the effect of relieving,
a building society or any other person from the obligation imposed by
subsection (1)(a), the agreement shall be void.

(3) If a building society fails without reasonable excuse to comply with
subsection (1)(b), the society shall be guilty of an offence; and every
officer of the society who is bound by the rules of the society to fulfil the
duty imposed by that paragraph, or, if there is no such officer, every
director of the society, unless it appears that he was ignorant of, or
attempted to prevent, the default, shall also be guilty of an offence.

(4) If a person other than a building society fails without reasonable excuse
to comply with subsection (1)(b), he shall be guilty of an offence.

(5) A building society or other person guilty of an offence under subsection
(3) or (4) shall be liable on summary conviction to a fine not exceeding
twenty pounds, and to an additional fine not exceeding five pounds for each
week during which the offence continues.

(6) Nothing in this section shall affect the operation of any rule of law
relating to the duty of a mortgagee to account to a mortgagor.

(7) In subsection (1) "mortgagor", in relation to a mortgage in favour of a
building society, includes any person to whom, to the knowledge of a person
selling the estate as mentioned in that subsection, any of the rights or
liabilities of the mortgagor under the mortgage have passed, whether by
operation of law or otherwise.

© 1967 Crown Copyright

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