clog on redemption

English · Property and land

Meaning. Any term in a mortgage that prevents or unfairly hampers the mortgagor's right to redeem the property.

The rule follows from “once a mortgage, always a mortgage”. The mortgagor's right to redeem on payment of the debt is the essence of a mortgage, and s.60 of the Transfer of Property Act makes any provision to the contrary void. Examples of clogs are a term that the property becomes the mortgagee's absolutely if not redeemed by a date, a term so long that redemption becomes illusory, and a collateral advantage for the mortgagee that continues after redemption.

Not every restriction is a clog. A long term is not a clog in itself unless it is oppressive, and a separate, later agreement by which the mortgagor sells the equity of redemption to the mortgagee can be valid.

Example

The clause forfeiting the land to the lender if the loan is not repaid within two years is a clog on redemption and void under section 60 TPA.

In Indian law

Section 60, Transfer of Property Act, 1882 (right of mortgagor to redeem)
Noakes & Co. v. Rice (House of Lords, 1902): collateral advantage continuing after redemption is a clog

clog on redemption

Example

In Indian law

See also

Read more in the study notes