ASSIGNMENT

Name - Lokesh meena

En. No.- 20LAW2BA017
Batch - BA.LLB
Semester -10th
Subject - Property Law and Easement Law
Topic - Mortgage
Submitted To - Miss Ritika Goswami
 Mortgage

CONTENT

• De nition
• kinds
• Right of Mortgagor and Mortgagee
• Liabilities of Mortgagor and Mortgagee
• Charge
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 Mortgage

De nition:
A mortgage is the transfer of an interest in
speci c 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.
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Parties Involved:

• Mortgagor: The transferor of the interest

(borrower).
• Mortgagee: The transferee of the interest
(lender).
• Mortgage Money: The principal amount and
interest payment is secured.
• Mortgage Deed: The instrument (if any) by
which the transfer is e ected.
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Kinds of Mortgages (as per the Transfer of
Property Act, 1882):
• Simple Mortgage:

• The mortgagor retains possession of the

property.
• The mortgagor personally undertakes to pay
the mortgage money.
• The mortgagee has the right to sell the
property through a court decree if the mortgagor
defaults.
• Mortgage by Conditional Sale:

• The mortgagor ostensibly sells the mortgaged

property to the mortgagee.
• There is a condition that:
• On default of payment, the sale becomes
absolute.
• On payment, the sale becomes void.
• On payment, the buyer (mortgagee) will
transfer the property back to the seller
(mortgagor).
• Usufructuary Mortgage:

• The mortgagor delivers possession (or

expressly or impliedly binds themselves to deliver
possession) of the mortgaged property to the
mortgagee.
• The mortgagee is authorized to retain
possession until payment of the mortgage money
and to receive the rents and pro ts from the
property in lieu of interest or principal, or both.
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• English Mortgage:

• The mortgagor binds themselves to repay the

mortgage money on a certain date.
• The mortgagor transfers the mortgaged
property absolutely to the mortgagee.
• There is a proviso that the mortgagee will re-
transfer the property to the mortgagor upon
payment of the mortgage money as agreed.
 • Mortgage by Deposit of Title Deeds
(Equitable Mortgage):
• A person delivers to a creditor or their agent
documents of title to immovable property.
• The intention is to create security thereon.

• Anomalous Mortgage:

• A mortgage that is not one of the types

mentioned above, or a combination of any of
these types.
Rights of a Mortgagor and Mortgagee

Rights of the Mortgagor:

• Right to Redemption (Section 60): The most
crucial right, allowing the mortgagor to reclaim
the property upon repayment of the mortgage
money at the stipulated time.
• Right to Transfer to a Third Party (Section 60A):
The mortgagor can direct the mortgagee to
assign the mortgage debt and transfer the
property to a third party instead of re-transferring
it to the mortgagor.
 • Right to Inspection and Production of
Documents (Section 60B): The mortgagor can
inspect and request copies of the mortgage deed
and related documents.
• Right to Accession (Section 63): If the
mortgaged property increases in value due to
natural causes, the mortgagor is entitled to this
accession upon redemption.
• Right to Improvements (Section 63A): The
mortgagor is entitled to the bene t of any

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improvements made to the property, subject to
certain conditions regarding costs.

• Right to a Renewed Lease (Section 64): If the

mortgagee obtains a renewal of a lease during
the mortgage, the mortgagor bene ts from it
upon redemption.

• Right to Grant a Lease (Section 65A): The

mortgagor, while in lawful possession, can grant
leases that are binding on the mortgagee under
certain conditions.
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Rights of the Mortgagee:

• Right to Foreclosure or Sale (Section 67): In

case of default in payment (and subject to the
terms of the mortgage), the mortgagee has the
right to obtain a decree from the court either
debarring the mortgagor from their right to
redeem (foreclosure in a mortgage by conditional
sale or English mortgage) or ordering the sale of
the mortgaged property (in a simple mortgage or
other mortgages where a power of sale is
conferred).
• Right to Sue for Mortgage Money (Section 68):
In certain circumstances (e.g., the mortgagor
binds themselves to repay, or the property is
destroyed due to the mortgagor's fault), the
mortgagee has the right to sue the mortgagor for
the mortgage money.

• Right to Sale Without Court Intervention

(Section 69): This right can be exercised only
under speci c conditions mentioned in the Act
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and the mortgage deed (typically in English
mortgages or where a power of sale is expressly
conferred).

• Right to Possession (Section 70): In a

usufructuary mortgage, the mortgagee has the
right to possess the property. In other mortgages,
they may acquire possession under certain
conditions or through a court order.
 • Right to Receive Rents and Pro ts (Section 76):
If the mortgagee is in possession, they have the
right to receive the rents and pro ts.
• Right to Accession and Improvements
(Sections 63, 63A): The mortgagee has certain
rights regarding accessions to and improvements
made on the property during the mortgage
period, particularly concerning the costs incurred.
• Right to Insure (Section 69A): If the mortgagor
fails to insure as per the agreement, the
mortgagee has the right to insure the property
and recover the expenses from the mortgagor.
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Liabilities of the Mortgagor:

• Implied Covenant for Title (Section 65): The

mortgagor is deemed to covenant with the
mortgagee that they have a good title to the
property and the right to transfer it.

• Duty to Defend Title: The mortgagor is bound to

defend their title to the property.

• Duty to Pay Public Charges: Unless agreed

otherwise, the mortgagor is liable to pay all public
charges, taxes, and rent accruing due in respect
of the property.

• Duty to Avoid Waste: The mortgagor must not

commit any act that is destructive or permanently
injurious to the property.

• Duty to Insure (if agreed): If there's an

agreement, the mortgagor may be liable to insure
the mortgaged property.
Liabilities of the Mortgagee:

• Duty to Manage the Property Prudently (Section

76): If in possession, the mortgagee must manage
the property as a person of ordinary prudence
would manage it if it were their own.

• Duty to Collect Rents and Pro ts: The

mortgagee must use their best endeavors to
collect the rents and pro ts.
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 • Duty to Pay Government Charges and
Insurance Premiums (if agreed): If there's an
agreement, or if the mortgagee recovers such
expenses from the mortgagor, they are liable to
pay these charges.

• Duty to Make Necessary Repairs: The

mortgagee is bound to make necessary repairs
out of the rents and pro ts.
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 • Duty to Not Commit Waste: The mortgagee
must not commit any act which is destructive or
permanently injurious to the property.

• Duty to Account (Section 76): The mortgagee

must keep a correct account of all sums received
and spent and provide it to the mortgagor.

• Duty to Restore the Property (Section 60): Upon

redemption, the mortgagee is bound to re-
transfer the property to the mortgagor.
Charge:

According to Section 100 of the Transfer of

Property Act, 1882, a charge is created when an
immovable property of one person is, by act of
parties or operation of law, made security for the
payment of money to another, and the transaction
does not amount to a mortgage. The person in
whose favor the charge is created is said to have
a charge on the property.
Thank you