The mortgagee, having asserted his common law right to possession and having taken the management of the property out of the mortgagor's hands, must himself assume the responsibilities of management. He must manage the property as a person of ordinary prudence would manage it if it were his own, and so long as the equitable right to redeem subsists, is liable to be called to account in respect of his management (k).

In the absence of an express stipulation a mortgagee in possession cannot charge remuneration for his personal trouble in managing the property or collecting the rents (l). He may, however, employ an agent if the management of the property is troublesome, and will in such case be entitled to credit in the account for reasonable payments for the services of the agent (m).

(j) Chambers v. Goldwin, 1804, 9 Ves. 254; Davis v. Dendy, 1818, 3 Madd. 170. Cf. chapter 32, Appointment of Receiver, Sec. 354.

(k) As to the general liability of the mortgagee to account, see chapter 27, Accounting between Mortgagor and Mortgagee. The special grounds of liability of a mortgagee in possession will be discussed in Sec. Sec. 305 ff.

(l) In re Wallis, Ex parte Lickorish, 1890, 25 Q.B.D. 176, at pp. 180, 182; Eyre v. Hughes, 1876, 2 Ch.D. 148, 18 R.C. 385. An express stipulation for remuneration would formerly have been held invalid as a collateral advantage, but a stipulation for a collateral advantage is now valid if it is not oppressive. See chapter 3, Legal Mortgage in Equity, Sec. 25.

(m) It is not a matter of course that a mortgagee is entitled to pay an agent to collect the rents for him, though some of the judges in modern times have been inclined to show great leniency in this respect. Union Bank of London v. Ingram, 1880, 16 Ch.D. 53, at p. 56.

A mortgagee, having once taken possession, cannot whenever he chooses and without the consent of the mortgagor (n), relieve himself of the liabilities of a mortgagee in possession by giving up possession, and the court will not usually appoint a receiver so as to relieve him (o).

If a mortgagee in possession assigns the mortgage without the concurrence or consent of the mortgagor, he does not thereby relieve himself from liability for future rents and profits if the assignee fails to account for them (p), but the court may relieve him from liability by appointing a receiver or directing an assignment (q).