Mortgage

DEFINITIONS

Mortgagor- The person transferring the security or his title of the property.

Mortgagee- The person to whom the property is being kept as security.

Mortgage- The transfer of an interest in specific immovable property for the purpose of
securing the payment of money advanced or to be advanced in way of loan, an existing
or future debt, or the performance of an engagement which may give rise to a pecuniary
liability.

Mortgage-deed – The contract or deed or instrument by which transfer is initiated.

Interest is bundle of rights through which one enjoys the possession of the property.

There are 6 kinds of Mortgage:-

a) Simple Mortgage- The mortgagor binds himself to pay the mortgage-money and
agrees – if failed to pay mortgagee shall have a right to sell the mortgaged property.

Possession- Without delivery

b) By Conditional Sale- The Mortgagor ostensibly sells the mortgaged property on

condition that on default of payment.

1. on a certain date the sale shall become absolute

2. on payment – the sale shall become void.

Possession- With Delivery (on condition)

c) Usufructuary Mortgage- Mortgagee to retain possession until payment of the

mortgage-money and to receive the rents and profits accruing from the property in lieu
of interest.

Possession- With Delivery

d) English ( same as simple) - Mortgagor binds himself to repay the mortgage money
on a specified date. Mortgaged property is absolutely transferred to the mortgagee till
the debt is paid off. Absolute transfer is made on the condition that it shall be re-
transferred once the payment is made by mortgagor

Possession- With delivery

e) By title deed- Delivers to a credit documents of title to immovable property, with

intent to create a security.

Possession- Without delivery

f) Anomalous- The transfer of mortgage which is not simple, by conditional sale,

usufructuary, English, by deposit of title-deeds.

Possession- Depends on the nature of Mortgage