Article

Kinds of Mortgages | Loans Secured or Unsecured | Transfer Of Property

by Shashank-Pant
May 26, 2020 14:30

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Loans may be secured or unsecured

When a person takes and specifies certain immovable property as security such property is said to be mortgaging property and such a thing is called mortgage. It was also known as Fiducia in Roman law.

Kinds of mortgages:

Simple mortgage

When mortgagor promises to pay the mortgage money without delivering possession of mortgaged property and agrees either expressly or impliedly then in case of non-payment of loan mortgagor shall have a right to cause mortgage property to be sold.

Mortgagee’s remedy:

1-Mortgagee may sue the mortgagor personally for the recovery of money.

2- mortgagee may also move to the court for sale of mortgagor’s property so that he may recover his money out of that and ask for a decree.

Registration: Simple mortgage can be made only through registered deed documents no matter the cost of the property.

Mortgage by conditional sale

Mortgage by conditional sale is an apparent sale with a condition that upon repayment of the consideration amount purchaser shall re-transfer the property to the seller. Intention here is to secure the money which the seller takes as loan from purchaser

Registration: When consideration amount is more than a hundred it shall be registered.

Usufructuary mortgage

Where the mortgagor gives possession of the property to the mortgagee to produce benefits out of such property. The mortgagee is entitled to enjoy the benefits of mortgaged property in lieu of interest on the principal money.

Registration: Is necessary when the property is above a hundred.

English mortgage

Here, there is the absolute transfer of property to mortgagee with a condition that when the debt is paid on a certain date mortgagee shall retransfer the property to the mortgagor. In an English mortgage there must be a specific date to be mentioned.

Registration: When a property is above a hundred registration is required.

Mortgage by deposits of title deeds

This is a very peculiar kind of mortgage as here execution of mortgage deed is not a necessary mere deposit of title deeds is necessary if a person needs an urgent loan this mortgage is helpful for him as it not require registration. It is generally used by the commercial town for the trading community.

Anomalous mortgage

Except for any mortgage mentioned above it is an anomalous mortgage.

Remedy - it will specifically be mentioned in the mortgage deed.

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