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Do You Know the 6 Types of Mortgages?
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This post is written by Abhishikta Munjal
Before you go for a mortgage, ensure to check the 6 mortgage types. Let find them out now!
What are mortgage loans
Section 58 a of the TRANSFER OF PROPERTY ACT, 1882, defines mortgage as, mortgage 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 which may give rise to a pecuniary liability. The bold letters signifies the essential elements for the creation of valid mortgage in favor of the lender over the immoveable property.
Types of Mortgages:
There are six kinds of mortgages which are detailed as under:
1. Simple Mortgage: It has below characteristics:-
i That the mortgagor must have bound himself personally to repay the loan
ii That to secure the loan he has transferred to the mortgagee the right to have the specific immovable property sold in the event of his having failed to repay
iii That the possession of the property is not delivered to the lender.
2. Mortgage by Conditional Sale: It defined as a situation, where the mortgagor ostensibly sells the mortgaged property
i on the condition that on default of payment of the mortgage money loan on a certain date the sale shall become absolute or
ii on condition that on such payment being made the sale shall become void or,
iii on the condition that in such payment being made the buyer shall transfer the property to the seller,
PROVIDED that no such transaction shall be deemed to be a mortgage, unless the condition is embodied in the document which affects or purports to affect the sale
This kind of mortgage came into vogue in India during Muslim rule and was given legal recognition in the Bengal Regulation Act, 1978.
3. Unsufructuary Mortgage: It has below characteristics:-
i That the possession of the property is delivered to the mortgagee;
ii That the mortgagee is to get rents and profits in lieu of the interest or principal or both;
iii That no personal liability is incurred by the mortgagor and
iv The mortgagee cannot foreclose or sue for sale.
v That no time limit can be fixed expressly during which the mortgage is to subsist.
This is not prevalent in India
4. English Mortgage: It has below characteristics:-
i That the mortgagor should bind himself to repay the mortgage money/loan on a certain day;
ii That the mortgaged property should be transferred absolutely to the mortgagee ; and
iii That such absolute transfer should be made subject to a proviso that the mortgagee will recover the property to the mortgagor, upon the payment by him of the mortgage money on the appointed day
The difference between the mortgage by conditional sale and English mortgage is that in English mortgage, the mortgagor binds him personally to repay the money.
5. Mortgage by Deposit of Title Deeds:
In England and popularly in India, this mortgage is called the equitable mortgage. Under the definition under Section 58 f of Transfer of Property Act, 1882, the essential requisites of such mortgage are:
i a debt should be there
ii deposit of the title deed with the lender most essential
iii said deposit is with intention that the said title deed shall be security for the debt.
Section 96 of the Transfer of Property Act, 1882 places mortgages by deposit of title deeds on the same footings as simple mortgages. As such, the security can, like a simple mortgage can be enforced by a suit for sale of mortgaged property, of course, by the process of the law. And this kind of mortgage does not require registration and is at par with any other legal mortgage.
6. Anamolous Mortgage:
A mortgage which is not a simple mortgage, a mortgage by conditional sale, an usufructuary, an English mortgage or a mortgage by deposit of title deeds within the meaning of Section 58 of Transfer of Property Act is an Anomalous mortgage.
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Key Factors Affecting Your Home Loan Amount Eligibility
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IIFL Home Loans | May 12 11:58 AM
Home Loans
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Key Factors Affecting Your Home Loan Amount Eligibility
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IIFL Home Loans | May 12 11:58 AM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Affordable Home Loans In India And IIFL Home Loans
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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Affordable Home Loans In India And IIFL Home Loans
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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Affordable Home Loans In India And IIFL Home Loans
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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NCD Vs FD: What Is The Difference Between The Two?
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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NCD Vs FD: What Is The Difference Between The Two?
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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NCD Vs FD: What Is The Difference Between The Two?
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IIFL Home Loans | Nov 23 4:12 AM
Home Loans
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Home Loans
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Home Loans
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7 Expert Tips For First-Time Home Loan borrowers
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IIFL Home Loans | Nov 02 9:30 AM
Home Loans
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Home Loans
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Home Loan Balance Transfer - Step By Step Guide
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IIFL Home Loans | Nov 02 9:30 AM
Home Loans
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Home Loans
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Home Loans
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Steps To Close A Home Loan Without Complications
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IIFL Home Loans | Aug 24 9:48 AM
Home Loans
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Frequently Asked Questions: Post RBIs Moratorium On Loan
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IIFL Home Loans | Sep 05 12:15 PM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Best Tips To Get Lowest Home Loan Interest Rates
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IIFL Home Loans | Oct 03 12:15 PM
Home Loans
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Success Tips For Young First-Time Home Buyers
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IIFL Home Loans | Oct 03 11:45 AM
Home Loans
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Success Tips For Young First-Time Home Buyers
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IIFL Home Loans | Oct 03 11:45 AM
Home Loans
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Success Tips For Young First-Time Home Buyers
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IIFL Home Loans | Oct 03 11:45 AM
Home Loans
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Success Tips For Young First-Time Home Buyers
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IIFL Home Loans | Oct 03 11:45 AM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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How To Claim Tax Benefits On Joint Home Loans?
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IIFL Home Loans | May 21 2:45 PM
Home Loans
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How To Claim Tax Benefits On Joint Home Loans?
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IIFL Home Loans | May 21 2:45 PM
Home Loans
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How To Claim Tax Benefits On Joint Home Loans?
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IIFL Home Loans | May 21 2:45 PM
Home Loans
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How To Claim Tax Benefits On Joint Home Loans?
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IIFL Home Loans | May 21 2:45 PM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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5 Things to Consider Before Refinancing a Home Loan
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IIFL Home Loans | Feb 21 3:30 PM
Home Loans
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5 Things to Consider Before Refinancing a Home Loan
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IIFL Home Loans | Feb 21 3:30 PM
Home Loans
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5 Things to Consider Before Refinancing a Home Loan
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IIFL Home Loans | Feb 21 3:30 PM
Home Loans
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5 Things to Consider Before Refinancing a Home Loan
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IIFL Home Loans | Feb 21 3:30 PM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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SIPs Can Help You to Pay Your Home Loan Interest
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Policies Increase the Efficiency of the Work Process!
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Home Loans
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Home Loans
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Home Loans
Tax Planning
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Home Loans
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Home Loans
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What Are The Benefits Of Buying A House in 20s
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Home Loans
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What Are The Benefits Of Buying A House in 20s
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Home Loans
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Home Loans
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Home Loans
Tax Planning
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Calculate Your Eligibility With Home Loan Calculator
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IIFL Home Loans | Feb 07 11:00 AM
Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Hacked!!! Why Indian Sailors Get a Loan Rejection?
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Home Loans
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
Pradhan Mantri Yojana
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Home Loans
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10 Things You Must Know About Home Loan EMI Calculator
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Home Loans
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10 Things You Must Know About Home Loan EMI Calculator
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Home Loans
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Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.