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Types of Mortgages: by Dr. Vasundhara Patil

1. The document defines different types of mortgages including simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, and mortgage by deposit of title deeds. 2. In a simple mortgage, the mortgagor retains possession of the property but the mortgagee has the right to sell the property if the loan is not repaid. 3. An anomalous mortgage is a combination of different mortgage types.

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99 views11 pages

Types of Mortgages: by Dr. Vasundhara Patil

1. The document defines different types of mortgages including simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, and mortgage by deposit of title deeds. 2. In a simple mortgage, the mortgagor retains possession of the property but the mortgagee has the right to sell the property if the loan is not repaid. 3. An anomalous mortgage is a combination of different mortgage types.

Uploaded by

Manglam Agarwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Types of mortgages

By Dr. Vasundhara Patil


Definitions - Sec. 58 of the Transfer of
Property Act, 1882
• A mortgage is the transfer of an interest in
specific immoveable 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.
definitions
• 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
Types of Mortgages -

• 1. Simple Mortgage
2. Mortgage by Conditional Sale
3. Usufructuary Mortgage
4. English Mortgage
5. Mortgage by deposit of title of
deeds
6. Anomalous mortgage
Simple Mortgage
• In a Simple mortgage, the possession of the
mortgaged property is not transferred from
mortgagor to the mortgagee.

If the mortgagor fails to repay the loan, the


mortgagee has the right to sell the property
and recover the loan from the sale amount.
2. Mortgage by Conditional Sale -
• Under such Mortgage, the mortgagor apparently
sells the property to the mortgagee on certain
conditions –
1.On failure to repay the mortgage money before a
certain date the sale shall become absolute,or
•
2.On condition that on such repayment of mortgage
money the sale shall become invalid,or
•
3.On condition that on such repayment the
mortgagee shall retransfer the property.
3. Usufructuary Mortgage
• the possession of the mortgaged
property is transferred to the mortgagee.
• The mortgagee receives the income from
the property (rent, profit, interest, etc)
until the repayment of the loan.
• The title deeds remain with the owner.
4. English Mortgage -
• 1.The mortgagor binds himself to repay the
borrowed money on a certain date.
•
2.The mortgagor transfers the property
absolutely to the mortgagee.
•
3.But such transfer is subject to the condition
that the mortgagee will retransfer the property
on repayment before the agreed date
5. Mortgage by deposit of title of deeds -

• In such mortgage, the mortgagor delivers the


title document of the property to the
mortgagee with an intention to create a
security thereon.
• Such mortgage is valid in towns of Kolkatta,
Mumbai and any other town as the State
Government may notify by publication in
Official Gazatte
6. Anomalous mortgage -

• Anomalous mortgage is a
combination of different types of
mortgages.
Right of redemption
• The right of redemption signifies
the inherent right of a mortgagor
to get back his property and
documents on payment of
mortgage money on or before a
specified date

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