(b) Simple Mortgage: In a simple mortgage, the borrower (mortgagor) promises to

personally pay back the mortgage money without giving up possession of the
property. If the borrower fails to repay as agreed, the lender (mortgagee) has the
right to sell the property and use the money to pay off the debt.

Illustration: Draw a picture of a person (mortgagor) holding a bag of money and a

house in the background. Another person (mortgagee) is standing nearby. The
mortgagor is making a promise to repay the money while still holding onto the
house. If the promise is broken, show the mortgagee selling the house to recover the
money.

(c) Mortgage by Conditional Sale: In this type of mortgage, the borrower (mortgagor)
appears to sell the property under specific conditions. These conditions could be:

1. Sale becoming absolute if the borrower fails to make the payment.

2. Sale becoming void if the payment is not made.
3. Buyer transferring the property back to the seller (mortgagor) upon payment.

Illustration: Draw a picture of a person (mortgagor) handing over the property's title
deed to another person (buyer). Show speech bubbles or captions indicating the
conditions mentioned above, depending on the specific condition of the mortgage
by conditional sale.

(d) Usufructuary Mortgage: In a usufructuary mortgage, the borrower (mortgagor)

gives possession of the property to the lender (mortgagee) or promises to deliver
possession. The mortgagee can retain possession until the borrower repays the
mortgage money. During this time, the mortgagee can receive the rents and profits
from the property, which may be used towards interest or as part of the mortgage
money.

Illustration: Draw a picture of a person (mortgagor) handing over the keys to the
property to another person (mortgagee). The mortgagee is shown collecting rent
from the property and counting money. The mortgagee keeps the possession until
the debt is repaid.

(e) English Mortgage: In an English mortgage, the borrower (mortgagor) agrees to

repay the mortgage money on a specific date and transfers the property's ownership
to the lender (mortgagee). However, there is a provision or condition that the
property will be re-transferred to the borrower upon full payment.

Illustration: Draw a picture of a person (mortgagor) handing over the property's title
deed and keys to another person (mortgagee). Show a calendar or clock to represent
the specific date of repayment. The illustration should also include an arrow
indicating that the property will be returned to the mortgagor once the money is
fully repaid.

(f) Mortgage by Deposit of Title-Deeds: In this type of mortgage, the borrower

(mortgagor) provides the lender (mortgagee) with the documents of title to the
property as a form of security. The documents are deposited with the lender to
create a legal binding on the property.

Illustration: Draw a picture of a person (mortgagor) handing over important papers

or documents (title-deeds) to another person (mortgagee). Both individuals can be
shown shaking hands to represent the agreement. You can also add a safe or a box
to show that the documents are being kept securely.

(g) Anomalous Mortgage: An anomalous mortgage is any mortgage that doesn't fit
into the categories mentioned earlier (simple mortgage, mortgage by conditional
sale, usufructuary mortgage, English mortgage, or mortgage by deposit of title-
deeds). It's a unique or uncommon type of

59. Mortgage when to be by assurance.

Section 59 of the Act states that the method of creating a mortgage

depends on the amount of money being secured:

1. Principal Money of ₹100 or more: If the principal amount of the

mortgage is ₹100 or above, a mortgage (except for a mortgage by
deposit of title-deeds) can only be created through a registered
instrument. This means that the agreement between the borrower
(mortgagor) and the lender (mortgagee) needs to be in writing,
signed by the mortgagor, and attested by at least two witnesses.
2. Principal Money less than ₹100: If the principal amount of the
mortgage is less than ₹100, the mortgage can be created either
through a registered instrument (as mentioned above) or, except in
the case of a simple mortgage, by the delivery of the property itself.
This means that the property can be handed over to the mortgagee
as a way of securing the loan.

Example: Let's say you want to borrow ₹150 from a bank to renovate your
house. Since the principal money is ₹100 or more, you and the bank would
need to create a mortgage using a registered instrument, which is a written
agreement signed by you and attested by witnesses. This agreement would
outline the terms of the mortgage, such as the repayment schedule and the
consequences of default.

Section 60 of the Act deals with the rights of the mortgagor (borrower) to
redeem or regain the property after the loan is repaid:

1. Right to Redeem: Once the principal money becomes due, the

mortgagor has the right to redeem the property by repaying the
mortgage money to the mortgagee (lender). Upon repayment, the
mortgagor can request the return of the mortgage deed and related
documents, take possession of the property if the mortgagee is
holding it, and either re-transfer the property to themselves or to a
third person of their choice.

Example: Continuing from the previous example, once you have repaid the
bank the full ₹150 mortgage money along with any interest owed, you have
the right to redeem the property. The bank would then need to return the
mortgage deed and any related documents to you. If the bank was holding
the property, they would need to hand over possession to you. Finally, you
could choose to keep the property or transfer it to someone else if you
wish.

In summary, Section 59 explains the methods of creating a mortgage based

on the principal amount, while Section 60 emphasizes the mortgagor's right
to redeem the property upon repayment of the mortgage money.

ection 60-A: Obligation to transfer to third party instead of re-

transference to mortgagor. In certain cases, when a mortgagor (borrower)
is entitled to redeem the property, they can request the mortgagee (lender)
to assign the mortgage debt and transfer the mortgaged property to a
third person of their choice instead of re-transferring it back to the
mortgagor.

Example: Let's say you borrowed money from a bank and mortgaged your
house as collateral. You are now in a position to redeem the property, but
you have a close friend who is interested in buying the house. Instead of
the property being re-transferred to you upon redemption, you can
exercise your right under Section 60-A to request the bank to transfer the
mortgage debt and property directly to your friend.

Section 60-B: Right to inspection and production of documents. As

long as the mortgagor's right of redemption exists, the mortgagor has the
right to inspect, make copies or extracts, and request production of
documents of title related to the mortgaged property that are in the
possession of the mortgagee. The mortgagor must bear the costs of
inspection and reproduction, including reimbursing the mortgagee's
expenses.

Example: Continuing from the previous example, if you want to review the
documents related to your mortgaged property, such as the title deeds or
other relevant records, you can exercise your right under Section 60-B. You
can request the bank (mortgagee) to allow you to inspect the documents,
make copies or extracts, and bear the associated costs.

Section 62: Right of usufructuary mortgagor to recover possession. In a

usufructuary mortgage, where the mortgagor delivers possession of the
property to the mortgagee and retains certain usage rights, the mortgagor
has the right to recover possession of the property along with all related
documents. However, if any improvements were made to the property by
the mortgagee at their own cost and if those improvements were necessary
for preservation or compliance with lawful orders, the mortgagor may be
liable to pay the appropriate cost.

Example: Imagine you entered into a usufructuary mortgage agreement

where you delivered possession of your land to the mortgagee, and in
return, they were allowed to cultivate and benefit from the land. If you
decide to redeem the property, you have the right under Section 62 to
recover possession of the land along with all the relevant documents, such
as the mortgage-deed. However, if the mortgagee made necessary
improvements to the land for preservation or compliance with orders (such
as constructing a protective wall), you may be liable to pay the cost of
those improvements in addition to the principal amount.

These sections provide specific rights and obligations to the mortgagor in

various mortgage scenarios, ensuring a fair and transparent process
between the borrower and the lender.