Equitable Mortgage Doctrine

The Equitable Mortgage Doctrine is a legal principle that allows a lender to treat a transaction as a mortgage, even if it lacks certain formalities, such as a written mortgage document. This doctrine is applied when the borrower intends to create a security interest in their property, but the formalities weren't completed. The court recognizes the lender's rights based on fairness and the parties' intentions, ensuring that the lender can still enforce the loan agreement and recover the debt secured by the property. Essentially, it protects lenders' interests even when paperwork is incomplete.