Consultation on Foreclosures begin
On the back of a concerning spate of foreclosures, changes are now being proposed to the law affecting charges on residential properties.
The Law Reform Commission(LRC) has put the proposed Registered Land (Amendment) Bill, 2020 out for public consultation.
The LRC says this follows a Discussion Paper it prepared looking into whether reform of the law relating to the enforcement of charges on residential properties was now necessary.
The document also considered what it described as “the level of hardship experienced by the owners of residential property who have been affected by such proceedings.”
The proposed amendments affect several delicate issues such as enforcement of charges on residential properties, foreclosures, and crucially - the level of hardship experienced by the owners of residential property who have been affected by such proceedings.
According to the LRC, the amendments to the Registered Land Law are being formulated out of submissions received from several stakeholders and the general public to the discussion paper.
That document is called “The Enforcement Of Mortgage-type Security Over Real Estate: Is Reform Of The Law Necessary?”
The LRC says there have already been responses to the proposed changes to the law dealing with how charges over land are regulated under the Registered Land Law (2018 Revision).
It says focus was placed on the provisions dealing with the form of charges over land; the remedies for the chargee when the chargor defaults in payment; the manner in which the chargee’s power of sale is exercised; and the variation of the powers under the legislation.
The legislation critically provides for a “Lending and Pre-action Protocol”
supported by a “Financial Circumstances Assessment Questionnaire” both of
which are intended to facilitate fairness and reasonableness between lender and borrower when seeking to resolve any matter of default in relation to a charge over land.
It contains a ‘Protocol and Questionnaire’ which seeks to encourage greater ‘pre-action engagement’ between lender and borrower before arriving at a decision to start foreclosure proceedings or any other relevant action.
Public feedback to the proposed amendment forms part of the consultation and stakeholders, property owners and the general public are invited to comment on it.
The deadline is October 16th.
The Law Reform Commission says the draft legislation may be viewed on its website www.lrc.gov.ky or on the governments main website which is www.gov.ky.
A hard copy may also be collected from the Offices of the LRC.
Submissions should be forwarded no later than 16th October, 2020 to the Director of the Law Reform Commission, 4th Floor Government Administration Building, Portfolio of Legal Affairs, 133 Elgin Avenue, George Town, Grand Cayman, P.O.Box 136, Grand Cayman KY1-9000 either electronically to email@example.com or in writing, by post or hand delivered.
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