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 holde…
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.
This is general information from the website library. Confirm current rules, fees and property details with the relevant authority before acting.
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