As the mortgagee is entitled, in the taking of the mortgage account, to be indemnified only so far as he has acted reasonably as mortgagee, he is not entitled, in the absence of special agreement, to add to the price of redemption the costs of negotiating the loan, investigating the title and completing the security (f). These costs, though they constitute a common law debt of the mortgagor to the mortgagee, which can be recovered by the latter as soon as the mortgage is made (g), are not costs incurred by the mortgagee as mortgagee (h). If the mortgage transaction falls through, the proposed lender has no claim against the borrower, in the absence of a special agreement, for the costs of negotiating the loan and investigating the title (i)

(e) Ex parte Fewings, In re Sneyd, 1883, 25 Ch.D. 338, at p. 348; Strahan, Law of Mortgages, 2nd ed., pp. 168-169.

(f) Wales v. Carr, [1902] 1 Ch. 860; cf. Gregg v. Slater, 1856, 22 Beav. 314.

(g) Therefore, in accordance with the usual practice, they may be deducted from the amount of the advance. Wilkinson v. Grant, 1856, 18 C.B. 319, at p. 320; cf. Ex parte Challinor, In re Rogers, 1880, 16 Ch.D. 260, at p. 266; Ex parte Rolph, In re Spindler, 1881, 19 Ch.D. 98; Hamilton v. Chaine, 1881, 7 Q.B.D. 319.

(h) Strahan, Law of Mortgages, 2nd ed., pp. 169, 170.

(i) Melbourne v. Cottrell, 1857, 29 L.T. 293; Holborrow v. Lloyd, 1859, 5 Jur. N.S. 114. An executory agreement to borrow money or to lend money will not be specifically enforced, the parties being left to their actions at law for damages. Rogers v. Challis, 1859, 27 Beav. 175, 18 R.C. 278; Sickel v. Mosehthal, 1862, 30 Beav. 371, 18 R.C. 282; Laries v. Gurety, 1874, L.R. 5 P.C. 346; Western Wagon

On the other hand, in an action to foreclose an equitable mortgage by deposit of title deeds with a memorandum whereby the mortgagor agreed to execute a legal mortgage of all his estate and interest in the mortgaged lands, the mortgagees were allowed, in the mortgage accounts, the costs of preparing a legal mortgage, the costs of correspondence with the mortgagor as to the legal mortgage, the costs of correspondence with a surety who had given a promissory note for part of the mortgage debt, but the mortgagees were not allowed the costs of investigating the title, for the mortgagor had only agreed to execute a legal mortgage of his estate and interest (j).