mortgage
A mortgage is the transfer of an interest in specific immovable property to secure 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 money liability. The transferor is the mortgagor, the transferee the mortgagee, the money secured the mortgage-money, and the instrument the mortgage deed.
The Transfer of Property Act recognises six forms: simple, by conditional sale, usufructuary, English, by deposit of title deeds, and anomalous. Only an interest, not ownership, passes; the mortgagor keeps the right to redeem on payment.
Example
Since the bank's loan was secured by a mortgage of the flat, the borrower could redeem it on repaying the loan with interest.
In Indian law
- Section 58, Transfer of Property Act, 1882 (definition and kinds)
- Section 60, Transfer of Property Act, 1882 (right of redemption)
See also
mortgagor · equity of redemption · simple mortgage · foreclosure
Read more in the study notes
- Need for ADR, international commitments and suitability of disputes (Alternative Dispute Resolution Systems)
- Banker and customer: who they are and the legal character of the relationship (Banking Law)
- Lending by banks: principles, priority sector, securities, interest and penalty (Banking Law)
- Default and recovery: Debts Recovery Tribunals and the SARFAESI Act (Banking Law)
- Damages, custom, state of mind, similar facts and course of business (sections 10 to 14) (Bharatiya Sakshya Adhiniyam)
- Proof of documents, public and private documents, presumptions as to documents, and exclusion of oral by documentary evidence (sections 64 to 103) (Bharatiya Sakshya Adhiniyam)