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SPEEDY Railway Book (English)

Details About Mortgage Loan: Imporant Key points


Mortgage is the transfer of interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan. It is an existing and future debt or the performance of an engagement which may give rise to pecuniary liability.

The mortgage only parts with the interest in the property. Mortgage is not merely a contract but it is conveyance of interest in the mortgaged property. As regards, the procession, except for unstructured mortgage, the possession remains with the mortgager.

  1. Effective Date – It is a registered mortgage and equity mortgage becomes effective form the date of mortgage.
  2. Relationship – There must be a creditor and debtor relationship or contract of guarantee between the bank and the mortgagor at the time of creation of mortgage.
  3. Repayment of Loan – On repayment of debt, the mortgage does not remain valid.
  4. Future Debt – Actual existence of the debit is not necessary .Even an application for debt and its acceptance establishes this relationship.

 Types of Mortgages:
  1. Mortgage by conditional sale – In this, the mortgagor evidently sells the mortgaged property on conditions that on default of payment of the mortgage money, the sale shall become absolute or such payment being made, the sale shall become void or the buyer shall transfer the property to the seller.
  2. Simple Mortgage – When mortgage without delivering the possession, binds himself personally to pay the mortgage money and agrees that in the event of his failing to pay the mortgage money, the mortgagee shall have right to cause the property to be sold.
  3. Equitable Mortgage – Where a person delivers to a creditor or his agent documents of title to stationary property, with the intent to create a security thereon, the transaction is called a mortgage by deposit of title deed or equitable mortgage.
  4. English Mortgage – Where the mortgage binds him to repay the mortgage money on a certain date and transfers the mortgage property absolutely to the mortgagee, but the subject to the condition that mortgagor upon payment of the mortgage money.
  5. Anomalous Mortgage – A mortgage which is not of any of the above four kinds, is an anomalous mortgage.
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