LEGAL PRINCIPLE: PROPERTY LAW — Mortgage — Irregular Exercise of Power of Sale — Protection of Purchaser’s Title
PRINCIPLE STATEMENT
Where a conveyance is made in professed exercise of the power of sale, the purchaser's title shall not be impeached on the ground that no case arose to authorise the sale, that due notice was not given, or that the power was improperly exercised. Any person damnified has a remedy in damages against the person exercising the power.
RATIO DECIDENDI (SOURCE)
Per Ogundare, JSC, in African Continental Bank Ltd v. Ihekwoaba (2003) NLC-1141999(SC) at pp. 17–18; Paras E–A.
"Where a conveyance is made in professed exercise of the power of sale conferred by this Act the title of the purchaser shall not be impeached on the ground that no case has arisen to authorise the sale, or that due notice was not given or that the power was otherwise improperly or irregularly exercised, but any person damnified by an unauthorised or improper or irregular exercise of the power shall have his remedy in damages against the person exercising the powers."
EXPLANATION / SCOPE
A purchaser’s title is protected despite irregularities in the exercise of the power of sale. The remedy of the person damnified is damages against the mortgagee. The principle applies to mortgage law. The rule protects bona fide purchasers. The mortgagor cannot impeach the purchaser’s title. The principle is statutory.