MORTGAGE

LAW ON INFRASTRUCTURE DEVELOPMENT

ROBIN SINGH
A-89
MEANING

The term mortgage refers to a loan used to purchase or maintain a home, land, or
other types of real estate. The borrower agrees to pay the lender over time, typically
in a series of regular payments that are divided into principal and interest. The
property serves as collateral to secure the loan. A borrower must apply for a
mortgage through their preferred lender and ensure they meet several requirements,
including minimum credit scores and down payments. Mortgage applications go
through a rigorous underwriting process before they reach the closing phase.
Mortgage types vary based on the needs of the borrower, such as conventional and
fixed-rate loans.
 MORTGAGE TYPES
• Mortgage by Conditional Sale: Under such mortgage, the lender can put a certain number of conditions
which the borrower must follow in terms of repayment. These conditions may include the sale of the
property if there is a delay in the monthly instalments, an increase in the rate of interest due to delay in
repayment, etc.
• English Mortgage: In this type of mortgage, the borrower has to transfer the property in the name of the
lender at the time of taking money, at a condition that the property would be transferred back to the
borrower once the complete amount is paid back
• Simple Mortgage: In such type of mortgage, the borrower needs to sign an agreement stating that if
he/she is unable to pay back the borrowed amount in specified time duration, then the lender can sell the
property to anyone to get his money back
• Usufructuary Mortgage: This kind of mortgage gives a benefit to the lender. The lender has the right over
the property for the due course of the loan period, he can put the property on rent or use it for other
purposes until the repayment of the amount. But the main rights lie with the owner himself
• Anomalous Mortgage: A combination of different types of mortgages is called an Anomalous Mortgage
• Equitable Mortgage: In this type of mortgage, the title deeds of the property are given to the lender. This
is a common phenomenon in the banking mortgage loans. It is done to secure the property
Rights of Mortgagor

▪ Every mortgage-deed leaves a right to the mortgagor and a corresponding liability for
mortgagee and vice versa. Following are the rights given to a mortgagor given by the
Transfer of Property Act, 1882:
1. Right to redemption
2. Right to transfer mortgaged property to a third party instead of retransferring
3. Right of inspection and production of documents
4. Right to accession
5. Right to improvements
6. Right to a renewed lease
7. Right to grant a lease
Duties/liabilities of a mortgagor

▪ Along with the rights given to a mortgagor, the Transfer of Property Act has also
conferred some duties on him. Following are the duties of a mortgagor:
1. Duty to avoid waste
2. Duty to indemnify for defective title
3. Duty to compensate mortgagee
4. Duty to direct rent of a lease to mortgagee
CONCLUSION

▪ With this, we come to an end to the long-drawn article of mortgage

where we learnt the rights and liabilities of mortgagor as well as
mortgagee and how both of them are equally responsible to take
reasonable care of the mortgaged property until the mortgage is
discharged off. Further, we also discussed the different
interpretations of mortgage in other statutes apart from the Transfer
of Property Act such as Real Estate Regulatory Authority Act, Indian
Contract Act and Consumer Protection Act which gave a multi-
directional approach of the application of mortgage and the
problems faced by the lenders to avail their securities and how can
they be protected within the other statutes.