When a property encumbered by an ancillary real right�such as a mortgage�is subdivided into multiple new units, each of those new units is encumbered by the entire right. This protection ensures that the right-holder (like a bank) does not lose thei…
When a property encumbered by an ancillary real right�such as a mortgage�is subdivided into multiple new units, each of those new units is encumbered by the entire right. This protection ensures that the right-holder (like a bank) does not lose their security through the act of subdivision. However, the new owners can negotiate with the holder of that right to divide the encumbrance. If the holder agrees, each new unit may then be encumbered by only a specific part of the original right as agreed.
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