Section 38 Mortgage and Property Law of Lagos State

Section 38 of the Mortgage and Property Law of Lagos State 2010 is about Assignment on sale. It provides as follows:

(1) A mortgagee exercising the power of sale conferred by the law shall have power, by deed to assign the property sold, for such estate and interest therein as he is by this law authorized to conveyor may be the subject of the mortgage, freed from all
estates, interests and rights to which the mortgage has propriety but subject to all interests and rights which have priority to the mortgage.

(2) Where a conveyance or an assignment is made in exercise of the power of sale conferred by this Law or any other law replaced by this Law, the title of the purchase shall not be impeachable on the ground —

(a) that no case has arisen to authorize the sale
(b) that due notice was not given or

(c) whether the mortgage was made before or after the commencement of this law, that the power was otherwise improperly or irregularly exercised and a purchaser is not, either before or on conveyance concerned to see or inquire whether a case has
arisen to authorize the sale, or due notice has been given, or power is otherwise properly and regularly exercised , but any person prejudiced or affected by an unauthorized or improper or irregular exercise of the power shall have his remedy in damages against the person exercising the power.

(3) An assignment on sale by a mortgagee, made after the commencement of this la, shall be deemed to have been made in exercise of the power of sale conferred by the Law;

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