The term Mortgage can be defined as a transfer of an interest in immovable property as security for a loan. A mortgage provides a legal interest in someone else’s property with a right to redeem. Pledge means a secured loan against any movable property, while the mortgage is a secured loan against immovable property. Section 58 of TPA defines the concept of a mortgage.
Essential elements to form a mortgage :
- Transfer of an interest
- Such transfer must be made for the purpose of securing the payment of money.
- The interest transferred must be in immovable property.
RIGHTS OF MORTGAGOR
A mortgagor is actually a person who mortgages the property. The mortgagor is the actual owner of the property. Such a person transfers an interest in immovable property for creating a mortgage. Section 59A [1]provides that a mortgagor derives his title under original mortgagor and, therefore, it includes executors, successors, and administrators. Section 60 to 66 and 95, TPA establishes the rights and duties of the mortgagor.
Common rights of mortgagor are :
- Right to let out
- Inspection and Production of Documents
- Right to accessions
- Right to Redemption
- Right to reasonable waste
- Right to direct the mortgaged property
RIGHT OF REDEMPTION
Right of Redemption [2] is one of the most basic and fundamental rights that a mortgagor possesses. It is an inherent right and not just a contractual right. Section 60 of TPA provides this legal right to the mortgagor. This right of redemption is cannot be taken away from the mortgagor.
The property which is mortgaged is a kind of security for payment of money lent. But mortgagor shall get back his /her property after repayment of mortgagee money. This right of the mortgagor to get back his property is known as the right to redeem.
Redemption includes two things:-
- Delivery of the possession
- Re-transfer of the interest to the mortgagee
Under section 60 of TPA, once the mortgagor makes full repayment of mortgage-money then the mortgagee shall return the mortgage deed and all documents related to the mortgaged property. A suit to enforce right under section 60 is known as a suit for redemption.
RIGHT TO REDEEM SEPARATELY
Section 61 of the act deals with the right to redeem simultaneously. It applies when the mortgagor has executed two or more mortgages in favor of one mortgagee. Then after payment of mortgage money, the mortgagor has a right to redeem anyone such mortgage separately.
The following persons can redeem the mortgaged property (Section 90)
- Mortgagor himself
- Sureties
- Charge Holders
- Any creditor of Mortgagor.
[1] Transfer of Property Act, 1882
[2] Section 60
This blog is written by Riddhi Chadha, Fairfield Institute of Management & Technology.
Some of her Blogs-
- INTERNET BANKING SECURITY THREATS: Legal framework
- JURISDICTION ISSUES IN E-COMMERCE
- DOCTRINE OF LIS PENDENS
- Guardianship under Hindu and Muslim law
Visit our Instagram page @lawyergyan at this link.
