Q1: What Is a Mortgage?

A1: A mortgage is the transfer of an interest in specific immoveable property to secure the payment of money advanced or to be advanced as a loan, or to secure an existing or future debt, or to ensure the performance of an engagement that may lead to a pecuniary liability.

Q2: Who Are the Parties Involved in a Mortgage Transaction?

A2: The transferor is called the mortgagor, while the transferee is called the mortgagee. The principal amount and interest secured are referred to as the mortgage-money, and the document that effects the transfer is known as the mortgage-deed.

Q3: What Is a Simple Mortgage?

A3: A simple mortgage is where the mortgagor binds himself personally to pay the mortgage-money without delivering possession of the mortgaged property. If he fails to pay, the mortgagee has the right to sell the property and apply the proceeds to the mortgage-money.

Q4: What Distinguishes a Mortgage by Conditional Sale?

A4: A mortgage by conditional sale occurs when the mortgagor sells the property under the condition that if the mortgage-money is not paid by a certain date, the sale becomes absolute. Alternatively, if the payment is made, the sale becomes void, or the buyer must transfer the property back to the seller.

Q5: What Characterizes a Usufructuary Mortgage?

A5: In a usufructuary mortgage, the mortgagor delivers possession of the property to the mortgagee, allowing the mortgagee to retain possession until the mortgage-money is paid. The mortgagee may also receive rents and profits from the property as payment towards the mortgage.

Q6: How Does an English Mortgage Differ From Other Types?

A6: Transfer of Property Act, 1882: In an English mortgage, the mortgagor binds himself to repay the mortgage-money by a certain date and transfers the property absolutely to the mortgagee, with a condition that it will be re-transferred to the mortgagor upon repayment of the mortgage-money.

Q7: What Is a Mortgage by Deposit of Title-Deeds?

A7: A mortgage by deposit of title-deeds occurs when a person delivers title documents to a creditor in specific towns (like Calcutta, Madras, and Bombay) to create a security on immoveable property. This is recognized in certain locations specified by the State Government.

Q8: What Is an Anomalous Mortgage?

A8: An anomalous mortgage is defined as any mortgage that does not fall under the categories of simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, or mortgage by deposit of title-deeds.

Q9: What Is Required for a Mortgage When the Principal Money Secured Is One Hundred Rupees or More?

A9: A mortgage (other than a mortgage by deposit of title-deeds) must be effected by a registered instrument that is signed by the mortgagor and attested by at least two witnesses.

Q10: What Are the Requirements for a Mortgage When the Principal Money Secured Is Less Than One Hundred Rupees?

A10: For a mortgage involving less than one hundred rupees, it can be effected either by a registered instrument signed and attested as required, or (except in the case of a simple mortgage) by delivery of the property.

Q11: What Does Section 59A Clarify Regarding Mortgagors and Mortgagees?

A11: Section 59A states that unless expressly provided otherwise, references to mortgagors and mortgagees in this chapter include persons deriving title from them, meaning their successors or assigns.

Q12: Why Is a Registered Instrument Important for Mortgages of Higher Value?

A12: A registered instrument is important for mortgages of one hundred rupees or more to provide legal validity and protection to the interests of both parties involved in the transaction.

Q13: What Right Does a Mortgagor Have After the Principal Money Becomes Due?

A13: The mortgagor has the right to redeem the mortgage by paying or tendering the mortgage-money at a proper time and place. This includes requiring the mortgagee to deliver the mortgage-deed and all relevant documents, return possession of the property if in the mortgagee's possession, and either re-transfer the property or acknowledge the extinguishment of the mortgagee's rights.

Q14: What Is the Process for a Mortgagor to Redeem Their Property?

A14: The mortgagor must pay the mortgage-money to the mortgagee, who is then required to deliver the mortgage-deed and related documents, return possession of the property if applicable, and execute necessary acknowledgments to extinguish any rights held by the mortgagee.

Q15: What Is a "Suit for Redemption"?

A15: A suit for redemption is a legal action taken by the mortgagor to enforce their right to redeem the mortgaged property.

Q16: Can a Person With Only a Share in the Mortgaged Property Redeem Just Their Share?

A16: No, a person interested in only a share of the mortgaged property cannot redeem just their share unless the mortgagee has acquired that share wholly or partly.

Q17: What Is Outlined in Section 60A Regarding the Mortgagor's Rights?

A17: Section 60A allows the mortgagor, upon fulfillment of conditions for redemption, to require the mortgagee to assign the mortgage-debt and transfer the mortgaged property to a third party as directed by the mortgagor, rather than re-transferring it directly to the mortgagor.

Q18: How Do the Rights of Encumbrancers Affect the Mortgagor's Rights Under Section 60A?

A18: The rights conferred by Section 60A can be enforced by the mortgagor or any encumbrancer. However, the requisition of any encumbrancer takes precedence over that of the mortgagor, and among encumbrancers, the requisition of a prior encumbrancer prevails over that of a subsequent one.

Q19: What Does Section 60B Say About a Mortgagor's Rights Regarding Documents?

A19: Section 60B states that as long as the right of redemption exists, the mortgagor is entitled to inspect, copy, or extract documents of title related to the mortgaged property at reasonable times and at their own cost, as well as cover the mortgagee’s costs for this inspection.

Q20: What Rights Does a Mortgagor Have When Multiple Mortgages Are Held With the Same Mortgagee?

A20: A mortgagor who has executed two or more mortgages in favor of the same mortgagee can, in the absence of a contract to the contrary, redeem any one mortgage separately or any combination of the mortgages together when the principal money becomes due.

Q21: Under What Conditions Can a Mortgagor Recover Possession of Property in a Usufructuary Mortgage?

A21: In a usufructuary mortgage, the mortgagor can recover possession of the property (along with the mortgage-deed and related documents) when: (a) The mortgagee is authorized to pay himself from the rents and profits and has paid the mortgage-money. (b) The mortgagee can pay himself a part of the mortgage-money from the rents and profits, and the term for payment has expired, followed by the mortgagor paying or tendering the remaining mortgage-money.

Q22: What Is the Mortgagor Entitled to Regarding Accessions to the Mortgaged Property?

A22: Upon redemption, the mortgagor is entitled to any accessions to the mortgaged property that occurred during the mortgage period, unless there is a contract stating otherwise.

Q23: How Does the Cost of Accessions Acquired by the Mortgagee Affect the Mortgagor?

A23: If accessions were acquired at the expense of the mortgagee and can be separately possessed, the mortgagor must pay the mortgagee for those expenses to take the accession. If separate possession isn’t possible, the accession must be delivered with the property, and the mortgagor is responsible for costs necessary to preserve the property.

Q24: What Happens if Improvements Are Made to the Mortgaged Property While in the Mortgagee's Possession?

A24: Upon redemption, the mortgagor is entitled to any improvements made to the mortgaged property during the mortgage period unless a contract states otherwise. However, if the improvements were necessary for preservation, compliance with legal orders, or to prevent deterioration, the mortgagor must pay the mortgagee for those costs, along with interest.

Q25: How Are Profits From Improvements or Accessions Handled in Relation to the Mortgagor?

A25: Any profits arising from accessions or improvements during the mortgage period shall be credited to the mortgagor, particularly if the improvements were made at the expense of the mortgagee.

Q26: What Happens if a Mortgagee Obtains a Renewal of a Lease on Mortgaged Property?

A26: If the mortgaged property is a lease and the mortgagee obtains a renewal, the mortgagor will benefit from the new lease upon redemption, unless there is a contrary contract.

Q27: What Are the Implied Contracts That a Mortgagor Has With the Mortgagee?

A27: In the absence of a contrary contract, the mortgagor implicitly contracts with the mortgagee that:

• The interest transferred exists and the mortgagor has the power to transfer it.
• The mortgagor will defend the title to the property.
• The mortgagor will pay all public charges related to the property while the mortgagee is not in possession.
• If the property is a lease, the mortgagor will pay the rent and comply with lease conditions.
• For subsequent mortgages, the mortgagor will pay the interest on prior encumbrances and discharge the principal when due.

Q28: Can a Mortgagor Lease the Mortgaged Property?

A28: Yes, a mortgagor can lease the mortgaged property while lawfully in possession, and such leases will be binding on the mortgagee. However, the lease must conform to certain conditions outlined in the law.

Q29: What Are the Conditions for Leases Made by a Mortgagor?

A29: The conditions for leases made by a mortgagor include:

• The lease must be made in the ordinary course of management and comply with local laws.
• The lease must reserve the best rent that can reasonably be obtained.
• No premium should be paid or promised, and rent should not be payable in advance.
• The lease cannot contain a covenant for renewal.
• It must take effect within six months of its making.
• For leases of buildings, the duration cannot exceed three years and must include a covenant for rent payment and conditions for re-entry if rent is unpaid.

Q30: How Do the Provisions Regarding Leasing Interact With the Mortgage-Deed?

A30: The provisions regarding the mortgagor's power to lease apply only if no contrary intention is expressed in the mortgage-deed. The terms can be varied or extended by the mortgage-deed, and such variations will operate similarly to the provisions outlined in the law.

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