Which assets and rights are considered to be real estate or real rights over which security can be granted to a lender?
The rights over which security can be granted include right of reversion, right of redemption and right of occupancy. A right of reversion is the right to resume ownership or possession of property upon the occurrence of a certain event which a borrower/mortgagor can grant to a lender as security. This implies that the lender would be entitled to any reversionary interest which may arise from the property of the borrower/mortgagor.
A right of redemption implies that upon discharging a loan or mortgage, a mortgagor is entitled to re-possess his property. This right can be used by a borrower to acquire more loans and the right of redemption would then be bestowed on the lender as security for money loaned.
A right of occupancy is one created from acquisition of property. It is a right of ownership and possession. It can be granted as security to a lender.
Assets considered to be real estate are land, buildings, intangible assets such as easements and rents, fixtures or machinery permanently fixed to land, property or building attached to land so that the law deems them to become part of the land.
A lender may create security interests over the above rights and assets