Due to the enactment of the Land and Conveyancing Law Reform Act 2009, Judgment Mortgages will now cease on death.
On this issue, there have been significant judgments delivered by the High Court. Most notably, the decision reached in Mahon v Lawlor. In this case, costs were ordered against Mr. Lawlor in litigation involving the Mahon Tribunal. The orders were made and registered as Judgment Mortgages on the subject lands. Mrs. Lawlor became registered as full owner of these lands by right of survivorship following the death of her husband. The Court took the view that Mr. Lawlor’s interest in the land ceased on his death and accordingly the Judgment Mortgage also ceased.
The courts have also ruled in Irwin v Deasy that they do not have the power to make an order for sale over jointly owned land in favour of a judgment creditor whose judgment and consequent judgment mortgage is only against one of these owners. This decision is currently on appeal to the Supreme Court.
Should you have any questions relating to these changes to Judgment Mortgages, please contact David Lavelle.
31 May 2010