Legal Definitions - common-law mortgage

A common-law mortgage is a type of mortgage where the borrower gives the lender a deed of trust as security until the loan is repaid. This type of mortgage is similar to a trust deed or an indemnity mortgage.

For example, John wants to buy a house but doesn't have enough money to pay for it in full. He takes out a loan from a bank and gives the bank a common-law mortgage on the house. This means that if John fails to repay the loan, the bank can foreclose on the house and sell it to recover the money owed.

Another example is when a business takes out a loan to purchase a property for their operations. The lender may require a common-law mortgage as security for the loan.