Definition of mortgage :
Mortgage means the transfer of the interest of specific immovable property for securing the payment of the loan. It is a legal assurance. Which is given to the lender. After the repayment of debt, the property will return to the borrower.
Features of Mortgage :
It is a written contract between the borrower (mortgagor) and lender (mortgagee).
It is a transfer of an interest in a specific mortgage property.
Its main purpose is to secure debt.
Its documents must be registered.
A minor borrower cannot do this contract.
The mortgage contract is signed by the mortgager and attested by the witness.
The possession of the property remains with the borrower.
TYPES or KINDS OF MORTGAGE :
Following are the important kinds of mortgage :
1. Simple Mortgage :
In this case, the borrower keeps the possession of the property in his hand. He is personally responsible for the payment of debt. If he fails to repay the debt then the lender has the right to obtain the decree for the sale of the property. It is called a simple mortgage.
2. Usufructuary Mortgage :
In this mortgage, the borrower (mortgagor) actually delivers the possession of the property to the lender (mortgagee). He can use it or rent out but after repayment of the loan, the possession is transferred back to the mortgagor.
3. English Mortgage :
In this case, ownership and possession both are transferred to the mortgagee on the condition that the loan will be repaid on a certain fixed date. After the repayment of loan, it is returned.
4. Equitable Mortgage :
The mortgagor (borrower) deposits the title deed of property as a security to the lender. From the banker point of view, it is not popular.
5. Anomalous Mortgage :
In this mortgage rights and liabilities of both, the parties are strictly determined according to the contract of mortgage deed.
6. Mortgage By Conditional Sale :
The borrower sells the property on this condition that if he fails to repay the loan then lender (mortgagee) will obtain the absolute proprietorship of the property. On the other side if he returns the loan then property will be restored.
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