Section 122 — Property Law Act 2007: Notice of intention to recover deficiency in relation to mortgages over land

122 Notice of intention to recover deficiency in relation to mortgages over land (1) This section applies if, under a mortgage over land,— (a) the mortgagee or receiver proposes, by reason of a default, to exercise a power to sell the mortgaged land; and (b) the mortgagee proposes to recover any deficiency on the sale from a former mortgagor or a covenantor. (2) The mortgagee or receiver must serve notice of the intentions referred to in subsection (1) on the former mortgagor or covenantor concerned at least 20 working days before the exercise of the power of sale. (3) Subsection (2) applies whether or not the former mortgagor or covenantor has been served with a copy of the notice required under section 118 or 119 . (4) A failure to serve a notice under subsection (2) on a former mortgagor or a covenantor does not prevent— (a) the mortgagee or receiver from exercising the power of sale; or (b) the mortgagee from recovering any deficiency from the former mortgagor or covenantor. (5) However, a former mortgagor or a covenantor who is prejudiced by a failure to serve a notice under subsection (2) is, to the extent of the prejudice, released from liability to the mortgagee for the deficiency. Compare: 1952 No 51 s 92(6)