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ARTICLE · 04 JULY 2012

Real Estate & Urban Development @ Gowlings: June 27, 2012 - Vol 3, Num 2

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When lenders consider their real property security options, their analysis often goes beyond simply taking a mortgage from a debtor who owns real estate.

CanadaReal Estate and Construction
Edited by Manuel Martins

In this issue:

  • Assignment of Lease vs. Mortgage of Lease
  • Ontario Clarifies Property Tax Rules for Renewables

Assignment of Lease vs. Mortgage of Lease

By: Manuel A. Martins

When lenders consider their real property security options, their analysis often goes beyond simply taking a mortgage from a debtor who owns real estate. A debtor's interest in real property leases (whether as landlord or tenant) means a lender often obtains either an Assignment of Lease or a Mortgage of Lease as additional security. Like any other specific security agreement, these agreements facilitate the orderly and more effective enforcement of the Lender's security in the underlying debtor asset.

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