215. How an equitable mortgage may be created.

(2)     Equitable Mortgages and Charges

(i)     Creation of Equitable Mortgages and Charges

215.     How an equitable mortgage may be created.

An equitable mortgage passes only an equitable estate or interest for the purpose of securing the repayment of a debt1. It may be made by:

  1.  

    (1)     a mortgage of an equitable interest2;

  2.  

    (2)     an agreement to create a legal mortgage3; or

  3.  

    (3)     a mortgage which fails to comply with the formalities for a legal mortgage4.