Mortgage & its Kinds — KSLU Property Law Notes
Mortgage & its Kinds
A mortgage (s.58) is the transfer of an interest in specific immovable 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 giving rise to a pecuniary liability. The transferor is the mortgagor, the transferee the mortgagee, and a mortgage transfers only an interest — ownership stays with the mortgagor, who retains the right of redemption.
| Kind of Mortgage | Key feature |
|---|---|
| Simple (s.58b) | No possession; personal liability + right to cause the property to be sold |
| Mortgage by conditional sale (s.58c) | Ostensible sale that becomes absolute on default / void on payment |
| Usufructuary (s.58d) | Possession to mortgagee, who takes rents & profits in lieu of interest/principal |
| English mortgage (s.58e) | Absolute transfer with a personal covenant to repay and reconvey |
| Equitable / by deposit of title deeds (s.58f) | Created by delivery of title deeds in notified towns |
| Anomalous (s.58g) | A combination not falling within the above |