Types of Mortgage under Section 58 of The Transfer Of Property Act, 1882

Section 58 of The Transfer Of Property Act, 1882 define . “Mortgage”, “mortgagor”, “mortgagee”, “mortgage-money” and “mortgaged”

Section 58(a) –  A mortgage is the transfer of an interest in specific Immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability.

The Transferor is called a Mortgagor,

The Transferee a Mortgagee.

The principal money and interest of which payment is secured for the time being are called the Mortgage-Money.

The instrument (if any) by which the transfer is effected is called a Mortgage-Deed.

Section 58(b) – Simple mortgage-Where, without delivering possession of the mortgaged property, the mortgagor binds himself personally to pay the mortgage-money, and agrees, expressly or impliedly, that, in the event of his failing to pay according to his contract, the mortgagee shall have a right to cause the mortgaged property to be sold and the proceeds of sale to be applied, so far as may be necessary, in payment of the mortgage-money, the transaction is called a simple mortgage and the mortgagee a simple mortgagee.

Section 58(c) Mortgage by conditional sale-Where, the mortgagor ostensibly sells the mortgaged property-
on condition that on default of payment of the mortgage-money on a certain date the sale shall become absolute, or
on condition that on such payment being made the sale shall become void, or
on condition that on such payment being made the buyer shall transfer the property to the seller,
the transaction is called a mortgage by conditional sale and the mortgagee a mortgagee by conditional sale:

PROVIDED that no such transaction shall be deemed to be a mortgage, unless the condition is embodied in the document which effects or purports to effect the sale.

Section 58(d) Usufructuary mortgage-Where the mortgagor delivers possession or expressly or by implication binds himself to deliver possession of the mortgaged property to the mortgagee, and authorises him to retain such possession until payment of the mortgage-money, and to receive the rents and profits accruing from the property or any part of such rents and profits and to appropriate the same in lieu of interest or in payment of the mortgage-money, or partly in lieu of interest or partly in payment of the mortgage-money, the transaction is called a usufructuary mortgage and the mortgagee a usufructuary mortgagee.

Section 58(e) English mortgage-Where the mortgagor binds himself to repay the mortgage-money on a certain date, and transfers the mortgaged property absolutely to the mortgagee, but subject to a proviso that he will re-transfer it to the mortgagor upon payment of the mortgage-money as agreed, the transaction is called an English mortgage.

Section 58(f) Mortgage by deposit of title-deeds-Where a person in any of the following towns, namely, the towns of Calcutta, Madras, and Bombay, and in any other town which the State Government concerned may, by notification in the Official Gazette, specify in this behalf, delivers to a creditor or his agent documents of title to immovable property, with intent to create a security thereon, the transaction is called a mortgage by deposit of title-deeds.

Section 58(g) Anomalous mortgage-A mortgage which is not a simple mortgage, a mortgage by conditional sale, a usufructuary mortgage, an English mortgage or a mortgage by deposit of title-deeds within the meaning of this section is called an anomalous mortgage.

Advertisements

Tagged: ,

One thought on “Types of Mortgage under Section 58 of The Transfer Of Property Act, 1882

  1. Best Mortgage Rates June 8, 2014 at 2:44 am Reply

    Thanks for sharing your ideas. The one thing is that learners have
    an option between fed Home Mortgage Rates Canada plus a private Home
    Mortgage Rates Canada where it really is easier to
    decide on Home Mortgage Rates Canada consolidating debts than through
    the federal Home Mortgage Rates Canada.
    One important issue is that while you are
    searching for a Home Mortgage Rates Canada you may find that you’ll need a co-signer.
    There are many conditions where this is correct because you may find that you
    do not use a past history of Mortgage Rates Canada
    so the financial institution will require that you’ve got someone cosign the financial Mortgage Rates Canada for you.
    Interesting post.
    Thank you for this article. I’d personally also like to say that
    it can be hard when you’re in school and just starting out to create
    a long Mortgage Rates Canada rating. There are
    many individuals who are simply trying to make it through and have long
    or beneficial Mortgage Rates Canada history can sometimes be a difficult factor to have.

    I have learned quite a few important things through your post.

    I would also like to mention that there can be situation that
    you will apply for a Mortgage Rates Canada and don’t need a co-signer such as a Federal government Home Aid Mortgage Rates Canada.

    However, if you are getting a borrowing arrangement
    through a common financier then you need to be
    ready to have a cosigner ready to assist you to. The
    lenders are going to base their own decision over a
    few variables but the largest will be your Mortgage Rates Canada history.
    There are some Mortgage Rates Canada companies
    that will likewise look at your job history and make a decision based on that but in almost all cases it
    will hinge on your score.
    One other issue is that if you are in a situation where you do not have a co-signer then you may genuinely wish to try to make use of
    all of your federal funding options. You’ll find many grants and
    other grants that will give you finances to support with classes expenses.
    Thanks alot : ) for the post.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: