Author: Boddu Harshith Sai, Student at Bennett University, Greater Noida, U.P
The objective of this article on the topic Mortgage: Definitions and Kinds is to give its readers an overview on the concept of Mortgage in relation with the Transfer of Property Act, 1882. According to the Transfer of Property Act, 1882, the term mortgage is defined as a transfer of interest in an immovable property is called as mortgage. For a set amount of time, one individual lends their property to another in exchange for cash. Immovable property, which is tangible property, can be used as collateral for the loan. However, the owner of the mortgaged property has the option to sell or utilize the asset to make up for any missed payments.
The terms of the transaction are determined by the parties; for instance, while lending money to another person, one party may do so without requesting any security or require some security in exchange for the repayment of the loan. The individual who lent the money may then file a lawsuit for repayment in the event of a default when no security was obtained. Additionally, if a security is taken, that security might be used to recover the money that was lost. Prior to 1882, there was no explicit law governing mortgage property transactions. The rights and obligations, laws governing mortgages, mortgagees, and mortgagors underwent a systematic and necessary modification after the establishment of the Transfer of Property Act, 1882 and comprehensive rules were formed. Prior to the 1882 Statute, the mortgagor had the right to redeem in order to recover the repayment of the mortgage loan, even if the act did not apply to earlier transactions.