What is an English Mortgage?
According to Section 58(e) of the Transfer of Property Act, where the mortgagor binds himself to repay the mortgage money on a certain date, and transfers the mortgaged property absolutely to the mortgagee, but subject to a proviso that he will re-transfer it to the mortgagor upon payment of the mortgage-money as agreed, the transaction is called an English mortgage.
What is a Mortgage by Conditional Sale?
As per Transfer of Property Act Section 58(c) Mortgage by conditional sale, where the mortgagor ostensibly sells the mortgaged property— on condition that on default of payment of the mortgage money on a certain date the sale shall become absolute, or on condition that on such payment being made the sale shall become void, or on condition that on such payment being made the buyer shall transfer the property to the seller, the transaction is called a mortgage by conditional sale and the mortgagee a mortgagee by conditional sale.
Distinction Between English Mortgage and Mortgage by Conditional Sale
|Mortgage by Conditional Sale
|English MortgageThe mortgagor is Personally Liable to pay the Debt
|Mortgage by Conditional SaleNo personal liability The mortgagee has his remedy against the mortgaged property alone
|English MortgageThe ownership in the mortgaged property is absolutely transferred to the Mortgagee
|Mortgage by Conditional SaleThe mortgagee acquired only a qualified ownership
|English MortgageDecree for Foreclosure under Section 67 is not Possible
|Mortgage by Conditional SaleForeclosure is the only remedy