simple mortgage
Under Section 58(b) of the Transfer of Property Act, 1882, in a simple mortgage the mortgagor does not deliver possession of the property, binds himself personally to pay the mortgage money, and agrees, expressly or impliedly, that on default the mortgagee shall have the right to cause the property to be sold and the proceeds applied in payment.
The mortgagee's remedy is a suit for sale through court (s.67), and a personal decree for any balance. He cannot sue for foreclosure, which is available to a mortgagee by conditional sale. Distinguish the usufructuary mortgage, where possession is delivered and there is no personal liability.
Example
Since the mortgagor kept possession and covenanted to repay personally, the deed was a simple mortgage and the bank's remedy was a suit for sale.
In Indian law
- Sections 58(b) and 67, Transfer of Property Act, 1882
See also
mortgage · usufructuary mortgage · English mortgage · foreclosure
Read more in the study notes
- Mortgage deed and lease deed (Drafting, Pleading and Conveyance)
- Mortgage: definition and kinds (Property Law)
- Priority, marshalling, contribution and charges (Property Law)