Mortgage
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Mortgage

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Mortgage Presentation Transcript

  • 1. CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mortgage Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 A. Lakshminarayanan Advocate Altacit Global EMAIL info@altacit.com WEBSITE www.altacit.com
  • 2. Introduction CHENNAI A mortgage is a loan secured by real3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 property through the use of a mortgage note which evidences the BANGALORE Suite 920, Level 9, Raheja Towers, existence of the loan and the 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, encumbrance of that realty through the granting of a mortgage which Coimbatore - 641018. Tel: +91 - 422 – 6552921 secures the loan. However, the word mortgage alone, in everyday usage, is EMAIL most often used to mean mortgage loan. info@altacit.com WEBSITE www.altacit.com
  • 3. Death Contract CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 The word mortgage is a French Law BANGALORE Suite 920, Level 9, Raheja Towers, term meaning "death contract", 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 meaning that the pledge ends (dies) COIMBATORE BB1, Park Avenue, # 48, Race Course Road, when either the obligation is fulfilled Coimbatore - 641018. Tel: +91 - 422 – 6552921 or the property is taken through foreclosure. EMAIL info@altacit.com WEBSITE www.altacit.com
  • 4. Definition CHENNAI3rd Floor, ‘Creative Enclave’, Sec. 58 of the Transfer of Property Act, 1882 defines mortgage148-150, Luz Church Road, Mylapore, as - Chennai - 600 004. Tel: +91 - 44 - 2498 4821 A mortgage is the transfer of an interest in specific BANGALORE Suite 920, Level 9, immoveable property for the purpose of securing the payment Raheja Towers, 26-27, M G Road, of money advanced or to be advanced by way of loan, an Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 existing or future debt, or the performance of an engagement COIMBATORE which may give rise to a pecuniary liability. BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 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 (if any) by which the transfer is effected is called a mortgage-deed. EMAIL info@altacit.com WEBSITE www.altacit.com
  • 5. CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Essentials of a Mortgage Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com
  • 6. Transfer of Interest CHENNAI3rd Floor, ‘Creative Enclave’, The first thing to note is that a mortgage is a transfer of148-150, Luz Church Road, Mylapore, interest in the specific immovable property. The mortgagor as Chennai - 600 004. Tel: +91 - 44 - 2498 4821 an owner of the property possesses all the interests in it, and BANGALORE when he mortgages the property to secure a loan, he only Suite 920, Level 9, Raheja Towers, 26-27, M G Road, parts with a part of the interest in that property in favour of Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 the mortgagee. After mortgage, the interest of the mortgagor COIMBATORE is reduced by the interest which has been transferred to the BB1, Park Avenue, # 48, Race Course Road, mortgagee. His ownership has become less for the time being Coimbatore - 641018. Tel: +91 - 422 – 6552921 by the interest which he has parted with in favour of the mortgagee. If the mortgagor transfers this property, the transferee gets it subject to the right of the mortgagee to recover from it what is due to him i.e., the principal plus interest. EMAIL info@altacit.com WEBSITE www.altacit.com
  • 7. Specific Immovable Property CHENNAI3rd Floor, ‘Creative Enclave’, The second point is that the property must be148-150, Luz Church Road, Mylapore, Chennai - 600 004. specifically mentioned in the mortgage deed. Where, for instance, the mortgagor stated “all of my Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, property” in the mortgage deed, it was held by the Court that this was not a mortgage. The reason why 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE the immovable property must be distinctly and BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. specifically mentioned in the mortgage deed is that, Tel: +91 - 422 – 6552921 in case the mortgagor fails to repay the loan the Court is in a position to grant a decree for the sale of any particular property on a suit by the mortgagee. EMAIL info@altacit.com WEBSITE www.altacit.com
  • 8. To Secure the Payment of a Loan CHENNAI3rd Floor, ‘Creative Enclave’, Another characteristic of a mortgage is that the148-150, Luz Church Road, Mylapore, Chennai - 600 004. transaction is for the purpose of securing the payment Tel: +91 - 44 - 2498 4821 of a loan or the performance of an obligation which BANGALORE Suite 920, Level 9, Raheja Towers, may give rise to pecuniary liability. It may be for the 26-27, M G Road, Bangalore - 560 001. purpose of obtaining a loan, or if a loan has already Tel: +91 - 80 - 6546 2400 COIMBATORE been granted to secure the repayment of such loan. BB1, Park Avenue, # 48, Race Course Road, There is thus a debt and the relationship between the mortgagor and the mortgagee is that of debtor and Coimbatore - 641018. Tel: +91 - 422 – 6552921 creditor. EMAIL info@altacit.com WEBSITE www.altacit.com
  • 9. Types of Mortgages CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, • Simple Mortgage Mylapore, • Mortgage by Conditional Sale Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE • Usufructuary Mortgage Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, • English Mortgage # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 • Mortgage by deposit of title of deeds • Anomalous mortgage EMAIL info@altacit.com WEBSITE www.altacit.com
  • 10. Simple Mortgage CHENNAI In a Simple mortgage, the possession3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 of the mortgaged property is not transferred from mortgagor to the BANGALORE Suite 920, Level 9, Raheja Towers, mortgagee. 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. If the mortgagor fails to repay the loan, the mortgagee has the right to sell the Tel: +91 - 422 – 6552921 property and recover the loan from the sale amount. EMAIL info@altacit.com WEBSITE www.altacit.com
  • 11. Mortgage by Conditional Sale CHENNAI3rd Floor, ‘Creative Enclave’, Under such Mortgage, the mortgagor apparently148-150, Luz Church Road, Mylapore, Chennai - 600 004. sells the property of the mortgagee on certain conditions – Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, •On failure to repay the mortgage money before a Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 certain date the sale shall become absolute, or COIMBATORE BB1, Park Avenue, •On condition that on such repayment of mortgage # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 money the sale shall become invalid, or •On condition that on such repayment the mortgagee shall retransfer the property. In such case, the mortgagee is a "mortgagee by EMAIL conditional sale". info@altacit.com WEBSITE www.altacit.com
  • 12. Usufructuary Mortgage CHENNAI3rd Floor, ‘Creative Enclave’, In a usufructuary Mortgage, the148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, possession of the mortgaged property is transferred to the mortgagee. The Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, mortgagee receives the income from the property (rent, profit, interest, etc) # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 until the repayment of the loan. The title deeds remain with the owner. EMAIL info@altacit.com WEBSITE www.altacit.com
  • 13. English Mortgage CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, In an English Mortgage – Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 • The mortgagor binds himself to repay the BANGALORE Suite 920, Level 9, Raheja Towers, borrowed money on a certain date. • The mortgagor transfers the property 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, absolutely to the mortgagee. # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 • But such transfer is subject to the condition that the mortgagee will retransfer the property on repayment before the agreed date. EMAIL info@altacit.com WEBSITE www.altacit.com
  • 14. Mortgage by deposit of title of deeds CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 In such mortgage, the mortgagor BANGALORE Suite 920, Level 9, Raheja Towers, delivers the title document of the 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 property to the mortgagee with an COIMBATORE BB1, Park Avenue, # 48, Race Course Road, intention to create a security thereon. Coimbatore - 641018. Tel: +91 - 422 – 6552921 Such mortgage is valid in towns of Kolkatta, Mumbai and any other town as the State Government may notify by EMAIL publication in Official Gazatte. info@altacit.com WEBSITE www.altacit.com
  • 15. Anomalous mortgage CHENNAI Anomalous mortgage is a combination3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 of different types of mortgages. A mortgage which does not fall strictly BANGALORE Suite 920, Level 9, Raheja Towers, into any of the above mortgages is an 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, anomalous mortgage. Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com
  • 16. CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 2498 4821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 6546 2400 COIMBATORE BB1, Park Avenue, # 48, Race Course Road, Coimbatore - 641018. Tel: +91 - 422 – 6552921 EMAIL info@altacit.com WEBSITE www.altacit.com