What must the son sign to protect the lender's interest in relation to the mortgage?

• A. A mortgage deed executed by the son
• B. A declaration in favour of the lender postponing any rights he may have in the house
• C. A waiver of any right to occupy the property
• D. A deed of surrender of rights

Answer: (B)

The key idea is to eliminate any competing claim to the property that could affect the mortgage. When a son may have potential rights in the house, such as an occupancy or beneficial interest, those rights could complicate or undermine the lender’s security if the borrower defaults. A declaration in favour of the lender postponing any rights he may have in the house directly puts those potential interests on hold, ensuring the lender’s ability to deal with the property (sale, repayment, enforcement) is not compromised. This is more comprehensive than simply denying occupancy rights or assigning new borrowing obligations, and it avoids the harsher step of surrendering rights outright. A declaration of postponement gives the lender clear protection while the borrower's and occupant's existing relationships remain legally recognized but temporarily limited in effect on the loan.