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99 views12 pages

Property

Uploaded by

Diya Miraj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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RIGHTS AND
LIABILTIES OF AN
MORTGAGER

Section 60 to 66 of Transfer of Property Act, 1882


RIGHTS OF AN MORTGAGER
 Right to Redeem (Section 60)
The mortgagor can reclaim property by repaying the mortgage, obtaining related
documents, and recovering possession. This right can be waived by contract or
court decree.

 Right to Transfer to a Third Party (Section 60A)


After repayment, the mortgagor can request the mortgagee to transfer the
property and deed to a third party of their choice.

 Right to Inspect Documents (Section 60B)


The mortgagor may inspect and copy property documents held by the
mortgagee, covering any costs involved.
RIGHTS OF AN MORTGAGER
 Right to Redeem Separately or Simultaneously (Section 61)
If multiple mortgages exist with the same mortgagee, the mortgagor can
redeem them individually or all at once unless the contract states otherwise.

 Right of Usufructuary Mortgagor to Recover Possession (Section 62)


In usufructuary mortgages, the mortgagor can regain possession once the
mortgagee has recovered the loan from property rents or profits.

 Accession to Mortgaged Property (Section 63)


Upon redemption, the mortgagor is entitled to any improvements made to the
property during the mortgage period unless otherwise agreed.
RIGHTS OF AN MORTGAGER
 Renewal of Mortgaged Lease (Section 64)
If the property lease is renewed by the mortgagee, the mortgagor gains the lease’s
benefits after redemption unless otherwise specified in the contract.

 Mortgagor’s Power to Lease (Section 65A)


The mortgagor may lease the property, binding the mortgagee, if done lawfully and
according to local norms. Specific terms limit lease duration and financial
arrangements.

 Right in Case of Waste (Section 66)


While the mortgagor isn't liable for natural wear and tear, they must avoid any act that
would cause serious damage to the property, especially if it undermines its value as
security.
1. Covenant for Title
If the mortgagor has warranted the title of the property but it’s later
found to be defective, the mortgagee can sue the mortgagor. The
mortgagee may claim both the principal repayment and compensation
for any losses due to the flawed title.

2. Liability to Indemnify for Defective Title

LIABILTIES OF
The mortgagor must compensate the mortgagee for damages if the title
is defective. Compensation covers costs the mortgagee incurred to
assert the title’s validity.
AN
MORTGAGOR 3. Liability to Avoid Waste (Section 66)
The Mortgagor must avoid actions that reduce the property’s value,
making it insufficient as security. Types of Waste:
Permissive Waste: Minor neglect (e.g., lack of ordinary repairs); not
liable.
Active Waste: Significant damage that lowers property value; mortgagor
is liable.

4. Improvements to Mortgaged Property (Section 63A)


The mortgagor is liable for expenses if necessary, improvements are
made by the mortgagee to prevent property destruction. These costs
add to the mortgage debt unless stated otherw ise.
RIGHTS AND
LIABILTIES OF AN
MORTGAGEE

Section 67 to 77 of Transfer of Property Act, 1882


RIGHTS OF AN MORTGAGEE
1.Right to Foreclosure or Sale(section 67)
It grants the mortgagee the authority to obtain a decree for
foreclosure from the court after the mortgage money becomes due.

2.Right to Sue for Mortgage Money(section 68)


A mortgagee has the right to sue for the mortgage money where the
mortgagor bind himself to repay, where the mortgaged property
wholly and partially destroyed, where the mortgagee is deprived of his
security due to a wrongful act and where the mortgagor has failed to
deliver possession of the property to the mortgagee
RIGHTS OF AN MORTGAGEE
3. Power to Sale when Valid(Section 69)
The mortgagee has the power to sell the mortgaged property without the intervention
of the court, on default of payment of mortgage money by the mortgagor in following
three cases:
 English mortgage between non-Hindus, non-Muslims, non-Mohammedans, and
members of any race or sect notified by the State Government in the Official
Gazette.
 Government being the mortgagee, with an express provision for sale without the
intervention of the court.
 Mortgaged property situated in Calcutta, Madras, Bombay, or any other gazetted
town or area.

4. Right of Accession (section 70 & 71)


 Increased Mortgaged Property (Section 70): If an addition is made to mortgaged
property after the mortgage date, the mortgagee gains rights over this addition,
RIGHTS OF AN MORTGAGEE
6. Rights of Mortgagee in Possession(Section 72)
A mortgagee can spend money to protect the property or improve their title,
adding these costs to the loan with interest, typically at 9% per annum if no rate
is specified.

7. Right to Proceeds of Revenue Sale or Composition on Acquisition


(Section 73):
If the property is sold due to unpaid taxes or rent not caused by the mortgagee,
the mortgagee can claim the sale proceeds to satisfy the mortgage debt.
LIABILITIES OF
AN MORTGAGEE
As per Section 76 of the Transfer of Property Act, 1882 list
down the duties of the mortgagee who is in possession of the
property.

 Duty to Manage the Property


 Duty to Collect Rents and Profits
 Duty to Pay Government Revenue and Charges
 Duty to Make Necessary Repairs
 Duty to Avoid Destructive Acts
 Handling Loss or Damage due to Fire
 Duty to Maintain Clear Accounts
CONTRIBUTION
o Contribution refers to the act of providing funds toward a shared liability or common debt.

o As per Section 82 of the Transfer of Property Act outlines the rules for contributing to a
common mortgaged debt.
o It allows a person who has paid off the debt to recover a proportional share from other
liable parties.
o The doctrine emphasizes fairness and equitable treatment among those sharing the
liability.
o It applies in situations where two or more mortgagors secure a common debt by
mortgaging different properties.
o Each mortgagor is equally responsible for contributing to the debt.

o Rules of Contribution:
o Mortgaged property belonging to two or more persons

o When one property may be mortgaged first and then again mortgaged with another
property.
o Supersession of the Rule of Marshalling over the contribution

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