What type of mortgage arises by operation of law?

A legal mortgage is a type of mortgage that arises by operation of law, meaning it is created automatically by the legal statutes that govern property ownership and lending. In this context, a legal mortgage secures a debt against the property and grants the lender certain rights in the event of default. This type of mortgage does not need an explicit agreement to be formed as it is established through the legal framework when certain conditions are met, such as when a borrower secures a loan and gives rights to the lender over the property being financed.

The distinction of a legal mortgage lies in its involuntary nature, as it typically occurs when the law imposes a claim or lien on the property to secure the repayment of a debt. This is different from a conventional mortgage, which requires a formal agreement between the borrower and lender, as well as other loans that depend on specific contractual terms. Knowledge about legal mortgages is essential for notaries, as they play a role in facilitating and acknowledging documents that pertain to property transactions and the obligations associated with mortgages.