HOW TO NEGOTIATE MORTGAGE TERMS IN CAMEROON – 2023 APPROVED GUIDELINES

MEANING OF MORTGAGE & HOW TO NEGOTIATE MORTGAGE TERMS IN CAMEROON

A mortgage is the transfer of a legal or equitable interest in land or other property as security for the repayment of a debt or the discharge of some other obligation for which it was given. That is, upon the loan’s repayment or the obligation’s performance, the conveyance becomes void and the interest is reconveyed. Negotiating mortgage terms in Cameroon is an essential aspect of mortgage transactions.

The following are the keywords in a definition of a mortgage:

Property used as security – the property here includes both movable and immovable properties and it includes the following (they can be regarded as security(s)

1. Land
2. Debenture
3. Insurance securities
4. Guarantees
5. Stock and shares
6. Charge over fixed deposit account (cash collateral
7. Trust receipts
8. Bill of sale      
9. Letter of set-off
10. Trust deed
11. Equity of redemption
12. Any other property

However, it is pertinent to note that the best security is LAND and it is preferable for use as security to negotiate mortgage terms in Cameroon. The reasons why land is the best security are:

1. Landed properties are more stable and reliable for negotiating mortgage terms in Cameroon
2. The value of land always appreciates, especially in times of inflation thus making it suitable for negotiating mortgage terms in Cameroon
3. The land is immovable, so it is easier to investigate and conduct a physical inspection of it in
4. It is easier to enforce security on land.
5. It is easy to perpetuate fraud with the moveable property. Shares can depreciate.

In determining the kind of security or collateral to demand, the mortgagee usually considers the following factors to negotiate mortgage terms in Cameroon:

1. The amount of the loan
2. The nature of the facility being sought to negotiate mortgage terms in Cameroon.
3. The duration of the loan
4. The integrity and financial strength of the borrower negotiating mortgage terms in Cameroon
5. Performance of an obligation – the obligation need not be repayment of the loan.
6. With a proviso for cesser upon redemption– this is a major distinguishing factor of mortgage as the person using the property has the right of getting the property back upon fulfillment of the obligations.

TERMS TO NEGOTIATE MORTGAGE TERMS IN CAMEROON

1. Mortgagors-the borrower
2. Mortgagee-the lender
3. Loan agreement (document prepared at the contract stage of a mortgage while a deed of legal mortgage is the final document to be ready at the completion stage)
4. Legal mortgage
5. guarantor/surety
6. Security/collateral
7. Mortgage property
8. Charge

Article by Barr. Mafany victor Ngando

Kinsmen Advocates Law Firm

“ The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances”