1) Introduction -
A mortgage is the most important kind of Security. The Essential nature of Mortgage is that it is a transfer of interest a specific immovable property. A mortgage is not a transfer of an absolute interest in the property mortgaged like sale or gift.
2) What is Mortgage?
A mortgage is the transfer of an interest in the specific immovable property for the purpose of securing 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 pecuniary liability (Section 58(a) of Transfer of Property Act, 1882)
3) Who is Mortgagor?
Here, the transferor is called a mortgagor.
4) Liabilities of Mortgagor -
Under Section 65 of the Transfer of Property Act, 1882 the liabilities of the mortgagor are as follows -
1) A Mortgagor must have the right to mortgage such property;
2) The mortgagor must have a legal title of the property;
3) The mortgagor is liable to pay all taxes if the property is not in the possession of the mortgagee.
4) The mortgagor is liable to pay the lease rent of the mortgaged property if the mortgaged property is under the lease. The mortgagor must comply also with the terms and conditions of the lease deed if the mortgaged property is under lease deed; and
5) The Mortgagor is liable to comply also with the terms and condition of the previous mortgage deed if any relating to the same property.
Rights of Mortgagor
Rights of Mortgagee
Kinds / Types of Mortgage