Mortgage Laws and Regulations
When we talk about mortgage rule at first we need to know the basics of mortgage. Mortgage is basically transfer of property to securing the repayment of money with interest amount taken as loan. Mortgage has been defined in Section 58(a) of Transfer of Property Act as "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 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, and the instrument by which the transfer is affected is called a mortgage-deed. Mortgage Deed, It is a legal instrument in accordance with the mortgage law in India and duly stamped under Indian Stamp Act, 1889. It is legal contract of both the parties. It contains details of the property owner, location of the property, size of property, amount of mortgage, loan details, interest payable and time duration. Mortgages can be of different Types: Simple Mortgage, Mortgage by Conditional Sale, Usufructuary Mortgage, English Mortgage, and Mortgage by deposit of title of deeds, Anomalous mortgage. The Simple mortgage, here the property is not transferred from mortgagor to the mortgagee but if the mortgagor fails to repay the loan, the mortgagee has the right to sell the property and recover the loan from the sale amount. In the second type the mortgagor apparently sells the property to the mortgagee on certain conditions like on failure to repay the loan any how before a certain date or the repayment of loan the sale shall become invalid and after repayment the mortgagee shall re transfer the property. In usufructuary Mortgage, the property is transferred to the mortgagee. The mortgagee receives income from the property (rent, profit, interest) until the repayment of the loan. In an English Mortgage The mortgagor repay the loan on a certain date else absolutely transfer the property. In Anomalous mortgage, mortgagor delivers the document of the property to the mortgagee. Such mortgage is valid in towns of Kolkata, Mumbai and any other town. According to the Mortgage Laws Rights of a mortgagor, a mortgagor can buy back the mortgaged property for money or can transfer the mortgaged property to third party also. Rights of Mortgagee, the legal proceedings initiated by a creditor to repossess the collateral for loan that is in default may be exercised by a mortgagee by a conditional sale or by anomalous mortgage. The mortgagee has a right to sue for the money under certain conditions, like going back on the promised money. The mortgagee has the power to sell the mortgaged property or a part under a few conditions. In that way according to the law the consumers get protected.