Professional Documents
Culture Documents
Transfer of Property
Mortgage and Its Various Types
Submitted by- Efaf Ali (3rd year,5th sem)
[2013]
ACKNOWLEDGEMENT
I feel highly elated to work on this dynamic and highly important topic that is Mortgage
and Its Various Types. This topic instantly drew my attention and attracted me to research on
it.
So, I hope I have tried my level best to bring in new ideas and thoughts regarding the
basics of this topic. Not to forget the deep sense of regard and gratitude to my faculty adviser,
Miss. Kumud Malviya who played the role of a protagonist. Last but not the least; I thank all
the members of the MATS Law School and all others who have helped me in making this
project a success.
INDEX
1) Cover page........................................................................................................1
2) Acknowledgement............................................................................................2
3) Index..................................................................................................................3
4) Chapter 1 - Introduction..................................................................................4
5) Chapter 2 - Definition And Nature Of Mortgage..........................................5
6) Chapter 3 - Forms Of Mortgages....................................................................8
7) Chapter 4 - Rights Of Mortgager.................................................................13
8) Chapter 5 - Rights Of Mortgagee.................................................................14
The sale shall become absolute if the mortgager fails to repay the amount on a
certain date.
(iv)The mortgagee has no right of sale but he can sue for foreclosure.
Foreclosure means the loss of right possessed by the mortgager to redeem the mortgaged
property. The mortgagee has the right to institute a suit for a decree so that the mortgager
will be absolutely debarred from his right to redeem the property. The right to foreclosure
8
ii.
there must be deposit of title deeds, are the title deeds should be deposited as security
for the debt.
Disadvantages
(1) If the mortgagor fails to repay, the mortgagee must get the decree for the sale of the
property. Getting a decree is expensive and time consuming.
Right of Mortgager(1) Rights of Redemption: The mortgager has a right to redeem the mortgaged property
provided:
a. he-pays the mortgage money on due date at the proper place and time,
b.
the right of redemption has not been terminated by an act of the parties or by decree
of a court.
The mortgager who has redeemed the mortgage is entitled to the following rights:
(a) to get back the mortgage deed and all other documents relating to the mortgaged
property,
(b) to obtain possession of the mortgaged property from the mortgagee, as in the case of
English mortgage,
(c) to have the mortgaged property retransferred at his cost to him or to such third person
as he may direct.
(2) Accession to Mortgaged Property: During the possession of the property, if the
mortgagee has voluntarily made any improvement in the property, the mortgager, on
redeeming the property, is entitled to all such additions or improvements, unless there is a
contract to the contrary.
(3) Right to Transfer to Third Party: The mortgager may require the mortgagee to transfer
the mortgaged property to a third person instead of retransfer to him.
(4) Right to Inspection and Production of Documents: The mortgager has the right to
inspect and make copies of all documents of title in the custody of mortgagee.
Chapter 6 CONCLUSION
A mortgage is the transfer of an interest in specific immovable property for the purpose of
securing the payment of money advanced or to be advanced by way of loan, an existing
or future debt, or the performance of an engagement which may give rise to a pecuniary
liability.
Mortgages are mainly of 6 types, which are as follows:1) Simple mortgage
2) Mortgage by Conditional sale
3) Usufuctuary mortgage
4) English mortgage
5) Mortgage of title deeds
6) Anomalous mortgage
In all the above mentioned various types of mortgage the possession of mortgage property is
clearly mentioned making clear who will be having its possession and that too up to what
extent, except in two types of mortgage, which are mortgage by conditional sale and the
another one anomalous mortgage. Sec 58 of Transfer of Property Act 1882 which deals with
topic of mortgage remains silent on point of possession in mortgage by conditional sale. And
in anomalous mortgage it is completely uncertain that who will have the possession of the
mortgaged property because anomalous mortgage is any mortgage which does not come
under the above mentioned first five kinds of mortgage. So in anomalous mortgage
everything complete depends on the terms and condition set while making the contract of
mortgage.