Mortgagees’ Duty of Care in Singapore: Staying the Course

Abstract

Whilst mortgagees do not owe mortgagors any general duty of care, they may come under specific duties of care, such as the duty to take reasonable steps to obtain the market price when they exercise their power of sale. This is trite law in Singapore. However, it has recently been suggested that mortgagees ought to owe mortgagors a general duty of care whenever there is no conflict of interest between them. This would effectively impose upon mortgagees a duty of care in deciding whether and when to sell the mortgaged asset. This article supports the status quo on grounds of precedent, principle and policy. The case for a general duty of care is flawed. This article argues that no general duty of care ought to be imposed on mortgagees; in particular, mortgagees should owe mortgagors no duty of care in deciding whether and when to sell.