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    What happens if a property under mortgage is amalgamated?

    Ali Faizan Syed1 min read0 viewsUpdated 1/2/2026
    If two Real Property Units are joined together (amalgamated), and one of them is already encumbered by a mortgage (an ancillary real right), the right transfers to the whole new unit. This occurs automatically without the need for the mortgage holder's approval. However, if both units have separate mortgages, the amalgamation cannot proceed without the express approval of both holders of those rights. This rule protects the security interests of banks and lenders during property modifications.

    Related Topics:

    Property Amalgamation
    Mortgage Rights
    DLD Registration
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