View Full Version : Discuss the right and liabilities of mortgagor. (2004)

08-30-2012, 07:29 PM
1. Introduction:
A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. the rights and liabilities of mortgagor and mortgagee are mentioned in the transfer of property act.
2. Relevant provisions:
Sec. 60 to 66 transfer of property act.
3. Definition of mortgage:
"Mortgage is transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to pecuniary liability.
The transferor is called mortgagor.
The transferee is called the mortgagee.
Mortgage money:
The principal money and interest of which payment is secured for the time being is called mortgage money.
Mortgage deed:
The instrument if any which the transfer is effected is called a mortgage deed.
4. Kinds of right and liabilities:
There are following two types of rights and liabilities of mortgagor as well as mortgagee.
(i) Statutory rights and liabilities:
The statutory rights and liabilities are provided in relevant sections of transfer of property act.
(ii) Contractual rights and liabilities:
Contractual rights and liabilities which the mortgagor and mortgagee stipulate in the contract.
5. Right of mortgagor:
Following are rights of mortgagor.
(i) Right to redeem:
Mortgagor has right to redeem the mortgage property.
(ii) Right of title deed:
When the whole debt is created the mortgagor has right to demand back all title deeds from mortgagee on the redemption of the property.
(iii) Right to demand delivery of possession:
Or redemption the mortgagor may demand, the mortgagee, where he is in possession of the mortgage property to deliver possession thereof to the mortgagor.
(iv) Right to compensation:
Mortgagor has right to compensation.
(v) Right that acknowledgement of extinguishments of rights be registered by the mortgagee:
The mortgagor, on payment or tendor of the mortgage, has right to require the mortgagee, at the cost of the mortgagor, to have registered an acknowledgment in writing that any right in derogation of his interest transferred to the mortgagee has been extinguished.
(vi) Right to re-transfer the property:
Mortgagor has right to re-transfer the mortgage property.
(vii) Right of inspection and production of document:
A mortgager as long as his right to redemption subsists, is entitled at his own cost to inspect or make copies of document of title relating to the mortgage property.
(viii) Right to redeem separately simultaneously:
A mortgager who has executed two or more mortgages in favour of the same mortgage shall in the absence of a contract to contrary when the principal money of any two more of the mortgagee has become due to entitled to redeem any one such mortgage separately or any two or more of such mortgages together.
(ix) Right of usufructuary to rceover possession:
Mortgager has right recover the property in case of usufructuary mortgage together with the mortgaged deed and all documents relating to the mortgage property which are in possession or power of the mortgagee.
(x) Right of accession to the mortgage property:
Where the mortgage property in possession of the mortgagee has during the continuance of the mortgage, received any accession, the mortgagor upon redemption shall be entitled to such accession against the mortgagee.
(xi) Right of improvement:
Where mortgage property in possession of the mortgagee has during the continuance of mortgage been improved the mortgagor upon redemption, shall be entitled to the improvement but will be liable to pay the costs thereof.
(xii) Right to benefit of new lease:
Where the mortgage property is a deed and mortgagee obtains the renewal of the lease, the mortgagor upon redemption shall have the benefit of new lease.
6. Liabilities of the mortgagor:
Following are the liabilities of the mortgagor.
(i) Liability to transfer valid interest:
The mortgagor is liable to transfer valid interest to the mortgagee in respect of the mortgage property.
(ii) Liability to defend title:
The mortgagor is under liability to defend his own title if he is in possession of mortgage property and if mortgagee is in possession he must enable him to defend his property.
(iii) Liability to pay public charges:
It is liability of the mortgagor to pay the public charges so long as the mortgagee is not in possession.
(iv) Liability to pay rents:
Where the mortgage property is a lease it is liability of mortgagor to pay the rent.
(v) Liability to pay interest and other encumbrances:
It is liability to pay interest on the prior mortgage and discharge of such encumbrances at the proper time where the mortgagee is a subsequent of second mortgage.
7. Conclusion:
To conclude I can say that, the transferor is called the mortgagor. he has rights and under some liabilities according to the transfer of property act.