Thursday, January 20, 2011


The kinds of mortgages are :

I. Simple Mortgage:  The possession of the poroperty mortgaged is not delivered to the mortgagee.

2.The Mortgagor undertakes personal liability to repay the mortgage debt.

3. There is no foreclosure of the mortgaged property.

4. There is mortgagor's consent, express or implied, that the mortgage shall have the right to sell the mortgaged property in the event of the mortgagor's failure to repay the debt and apply the sale proceeds in payment of mortgage money.

5. The mortgaged property cannot be sold out of court unless a decree has been obtained for such a sale.

6. The mortgage deed must be registered even if the consideration is below Rs.100/-

II.  Mortgage by Condition Sale :

1. The Mortgagor ostensibly sells the mortgaged property.

2. The sale must be conditional.

3. The remedy of the mortgageee is by forecosure and not by sale.

4.The delivery of possession is essential.

5. The transactions must be embodied in a single deed and not in two separate deeds, i.e one for sale and another for repurchase.

III. Usufructury Mortgage

1. The possession of the mortgaged property is delivered to the mortgagee, or
    the mortgagor binds himself expresly or impliedly to deliver possession of the mortgaged property.

2. The nortgagee can retain the possession of the mortgaged property till the repayment of the mortgage money.
3. the mortgagee is to receive the profits of the mortgaged property or any part of such profit.
4. Such profits received by the mortgagee should be appropriated in lieu of interest or in repayment of the mortgage money, or partly in lieu of interest and partly in repayment of the mortgage money.
5. There is redemption when the mortgage money and the interest due is paid or discharged by profits received.
7. The The delivery of the possession of the mortgaged property is essential.

IV. English Mortgage

1. The possession of the mortgaged property passes from the mortgagor to the mortgagee.
2. There is personal covenant to repay the mortgage debt by a certain date.
3. The mortgage is affected by an absolute transfer of the mortgaged property with a stipulation for retransfer in case of the repayment of the amount due.

4. The remedy of the mortgagee is by sale and not by foreclosure.

5. Power of sale out of court is conferred on certain persons under certain circumstances.

V. Mortgage by deposit of title deeds.

1.Where a person delivers to a creditor or his agent documents of title to immovable property, with  intent to create a security thereon, the transaction is called  amortgage by deposit of title deeds.

2. It is effected by deposit of material title deeds of the mnortgaged prperty; no delivery of possession takes place.
3. Equitable mortgage is created to secure debt or advances already made or to cover future advances.

5. Theremedy is by sale  and not by foreclosure.

6. All the provisions relating to a simple mortgage apply to an equitable mortgage.
7. Registration is not necessary even if there is a writing recording the deposit of title deeds.

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