1) What is mortgage

      The term 'Mortgage' consists of two words 'Mort' and 'Gage'. Mort which means ' a place of public sale and  'Gage' means 'A pledge'. In this way, mortgage means a pledge made at a place of public sale.

2) Definition of mortgage - 

         Section 58(a) of the Transfer of Property Act 1882 defines Mortgage as "A mortgage is the transfer of an interest in 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.

         The transferor is called a mortgagor, the transferee a mortgagee; the principal money and interest of which payment is secured for the time being are called the mortgage-money, and the instrument (if any) by which the transfer is effected is called a mortgage-deed.
   

3) Essentials of mortgage - 

There are three essentials of Mortgage which are as follows -

(a) There must be a transfer of interest.

          There is no transfer of ownership but the transfer of interest only for the purpose of securing payment of money by way of loan. The right of the mortgagee is only an accessory right,  which is intended merely to secure the due payment of Debt. A mortgage is simply a transfer of the interest in the immovable property while the ownership still remains with the mortgagor.


(b) There must be specific immovable property intended to be mortgaged.


          The immovable property must be distinctly specified. The description of the property in the mortgage deed must be sufficient to identify the property. 

(c) The transfer must be made to secure the payment of a loan or to secure the performance of a contract. an existing or future debt or the performance of an engagement which may give rise to pecuniary liability.



4) Registration of Mortgage Deed 


           according to Section 59 of the Transfer of Property Act, 1882- 

       i) In case of Simple Mortgage, the principal money is irrelevant, and the mortgage deed must be registered duly signed by the mortgagor (The transferor is called a mortgagor.) and attested by at least two witnesses.


      ii) In case of Equitable Mortgage or Mortgage by deposit of title deeds, the principal money is irrelevant, and the mortgage deed is not required to be registered. The parties have the option, for example, it may be either by registration of Deed or only by deposit of title deed.

    iii) in case of any other kind of mortgage, if the principal money is 100 rupees or more,  the mortgage deed must be registered duly signed by the mortgagor and attested by at least two witnesses; and if principal money is less than 100 rupees the mortgage deed not required to be registered.The parties have the option, for example, it may be either by registration of the deed or by delivery of possession of the property.

See also


Types of mortgage

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