SOME RENTS RAISED

Taranaki Daily News, 5 September 1935, Page 4

SOME RENTS RAISED

MORTGAGE CORPORATION ACT. STEP DEMANDED BY LAW. (By Wire—Parliamentary Reporter.) Wellington, Last Night. An increase in rents payable on certain house properties originally built on Sate Advances mortgages and now handled by the Mortgage Corporation was explained to-night by Mr. A. D. Park, joint managing director of the corporation. ‘ . f Mr. Park said that the corporation did not itself possess any house properties but that in cases where the original mortgagor had left his property the corporation handled it in the capacity of mortgagee in possession. Under common law the corporation was obliged to account to the original mortgagor for all returns from his property. Mr. Park referred to the recent case involving the Public Trustee in which the beneficiaries of an estate had sued this official, basing their claim on the contention that he was not getting full market rents on the property. The court’s decision had been against the trustee. The Moi-tgage Corporation would be so liable in respect of properties it was handling in such circumstances. All the corporation had done in any particular case of raising rents had been to meet the market and to safeguard the interests of the mortgagor—its obligation under common law.