Professional Documents
Culture Documents
The Transfer of Property Act, Chapter 4 Section 58 to 99 deals with the provision of
mortgage.
Mortgage is the most important kind of Security. The Essential nature of mortgage is that it is
a transfer of interest a specific immovable property. Mortgage is not a transfer of absolute
interest in the property mortgaged like sale or gift.
DEFINITION OF MORTGAGE -
Definition of mortgages given under Section 58(a) : 'mortgage' , 'mortgagor', 'mortgagee' , '
mortgage- money' and mortgage-deed -
A mortgage is the transfer of an interest in a 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.
Mortgagor -
The transferor is called a mortgagor.
Mortgagee -
The transferee a mortgagee.
Mortgage-money -
The principal money and interest of which payment is secured for the time being are called
the mortgage-money.
Mortgage-deed -
The instrument (if any) by which the transfer is effected is called a mortgage-deed.
1
ESSENTIALS/ELEMENTS OF MORTGAGE
3) The transfer must be made to secure the payment of a loan or to secure the performance of
a contract. The consideration of mortgage maybe either
2
transferees and may be enforced against a transferee with notice.
bona fide purchaser for value with or without
notice.
A charge created by act of parties requires A charge created by operation of law does
registration irrespective of the amount not require registration prescribed by S. 59 of
involved. the Act for a mortgage.
A mortgage can be enforced by foreclosure A charge can be enforced only by sale of
suit for money and sale (under Sections 67, property through the Court.
68 and 69).
A simple mortgage can be enforced within 12 A charge can be enforced within 12 years.
years whereas other types of mortgages can
be enforced within 30 years.