Q # 05: What do you under by the term mortgage (Girvi rakhna)?

What are different kinds of mortgage?

1. Introduction
 In a mortgage, there is an agreement between the debtor and
a creditor. The debtor or mortgagor is the owner of the property,
while the creditor or mortgagee is the owner of the loan. When the
mortgage transaction is made, the debtor receives the money with
the loan, and promises to pay the loan. The creditor will receive
money back with interest on prescribed time. If the debtor does not
pay the loan, the creditor may take the mortgaged property in place
of the loan. This is called foreclosure. (Zabat krna)

2. Relevant provision
 Sec 58 of transfer of property act deals with mortgage.

3. Definition of mortgage
 Provision of property by debtor to a creditor as a security against the
loan received on the condition that it shall be returned by creditor on
the payment of the debt within a certain period

4. Parties of mortgage
Following are the parties of mortgage.

1. Mortgagor
 Mortgagor is a person to whom loan is given or is known as
debtor

2. Mortgagee
 Mortgagee is a person who given loan or is known as creditor

5. Essentials of mortgage
Following are the essentials of mortgage.

 There should be a specific immoveable property

 There should be transfer of an interest
 The mortgage should be based on consideration

6. Kinds of mortgage
Following are the various kinds of mortgage.
1. Simple mortgage
 Simple mortgage is such mortgage where mortgagor without
delivering possession of the mortgaged property, binds himself
personally to pay the mortgage money and agrees expressly or
impliedly in case of failure to return the money to creditor the
creditor cannot directly sell the property. The sale must be
through the intervention of the court.

 Essentials
 The property is mortgaged unconditionally
 Possession of property is not delivered
 Personal obligation to pay the debt
 Obligation may be express or implied

2. usufructuary mortgage
 A usufructuary mortgage is such mortgage where the mortgagor
delivers or agrees to deliver the possession of the mortgaged
property to the mortgagee and authorizes him to hold the
property until the payment of loan is given.

 Essentials
 There is no personal obligation to pay the debt on
mortgagor
 The possession of the property is delivered to the
mortgagee
 No time period is fixed to pay the mortgage money
 Mortgagee cannot sale the property
 Mortgagee is entitled to earn profit or can give the
property on rent

3. Mortgage by conditional sale

 In this situation, the mortgagor sells the mortgaged property on
condition that if mortgagor will fail to return the payment on a
certain period, the sale of the property shall become absolute.

 Essentials
 This mortgaged property is subject to sale
 The sale becomes absolute on the non-payment of loan
 Possession of property is not given
 There is no personal obligation to pay the debt on
mortgagor
 4. English mortgage
 English mortgage is such mortgage where the mortgagor binds
himself to repay the loan on a prescribed time, but also transfers
his property to mortgagee, and there is a promise between the
mortgagor and mortgagee that mortgagee will re-transfer the
property to mortgagor after receiving the payment of loan back.
It is called English mortgage.

 Essentials
 Mortgagor binds himself to repay the loan on a certain
date
 The possession of the property is delivered to the
mortgagee
 The transfer is subject to that the mortgagee will return
the property to mortgagor after receiving the payment of
loan back

5. Mortgage by deposit, of title deeds

 Where a mortgagor deposits a document of title of his
immoveable property to a mortgagee or his /her agent, with the
intention to keep this document as a security and this
transaction is called a mortgage by deposit of title deeds-.It is
the most popular with banks.

 Essentials
 The document of title deed is deposited as a security
 There is a debt
 On repayment of the loan, the document of title deed is
returned to the mortgagor

6. Anomalous mortgage
 A mortgage other than any of the mortgages explained so far. An
anomalous mortgage is such a mortgage which includes a
mortgage formed by combination of two or more types of
mortgages as explained above.

7. Remedies for mortgagor

Following are the remedies for mortgagor
 1. Mortgagor can file a case if property is sold by mortgagee
2. Mortgagor can file a case for money

8. Conclusion
 To conclude i can say that the mortgage may be a thing moveable or
immoveable which is handed over by debtor to creditor as a security
against the loan taken, and it is returned to debtor when he repays
the amount of loan to debtor, there are a lot of kinds of mortgage
such as simple mortgage, conditional mortgage and mortgage by
deposit of title deed etc.