Managing Director, Fluent Consultants Pvt. Ltd.

, Pune

Lecture & Presentation by P. R. Kulkarni,

MORTGAGE
P. R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune 1

What is Mortgage

Mortgage is a transfer of specific interest in the property owned by a person in favour of the creditor

P. R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune

Sec. 58 of Transfer of Property Act, 1882

Mortgage - Definition

- A transfer of an interest in specific immovable property - For the purpose of securing,

1. payment of money advanced or to be advanced by way of a loan or 2. an existing or future debt or 3. performance of an contract which gives rise to a pecuniary liability
P. R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune 3

Mortgage Money
Mortgage money means principal sum of money and interest thereon Order 34,Rule 22 of Civil Procedure Code gives components of mortgage money as principal amount and costs, charges and expenses properly incurred by the mortgagee (Bank) in respect of the property plus interest.
P. R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune 4

Who can create mortgage

Mortgage is a legal contract. So the parties i. e. mortgagor and mortgagee must be competent to contract. Mortgagor must be absolute owner of the rights he is mortgaging. Capacity of ownership must be understood i. e. individual, joint, HUF, partner, company etc.
P. R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune 5

Sec. 58 of Transfer of Property Act, 1882

Types of Mortgage

1. Simple Mortgage (Registered Mortgage)

2. Mortgage by conditional sale 3. Usufructary Mortgage 4. English Mortgage

5. Mortgage by Deposit of Title Deeds (Equitable Mortgage)

6. Anomalous Mortgage
P. R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune 6

Simple Mortgage
Mortgage Deed is registered Stamp duty on deed and registration fees are required to paid Possession of the property is not given to the mortgagee (bank) Mortgagee has right of foreclosure i. e. get the property sold for recovery of dues
P. R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune 7

Equitable Mortgage
Delivery of documents of title to immovable property to creditor or his agent - Such delivery at notified town - Delivery of documents with intention to create mortgage to secure existing or future debt Needs no registration but needs stamp duty
P. R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune 8

Registered vs. Equitable Mortgage

Both are defined at section 58 of the Transfer of Property Act, 1882 By definition both are at same footing without any discrimination with each other Remedy available to mortgagee in case of default of payment by mortgagor is same
Contd.
P. R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune 9

Registered vs. Equitable Mortgage

Section 96 of the Transfer of Property Act, 1982 says The provisions hereinbefore contained which apply to a simple mortgage shall, so far as may be, apply to a mortgage by deposit of title deeds Section 48 of the Registration Act,1908 recognizes and puts equitable mortgage at par with registered mortgage providing priority based on date of mortgage and not merely due to registration
P. R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune 10

Thank You
Lecture and Presentation
by

P. R. KULKARNI
Managing Director Fluent Consultants Pvt. Ltd., Pune

P. R. Kulkarni, Managing Director, Fluent Consultants Pvt. Ltd., Pune

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