A mortgage is a loan secured by real property through the use of a mortgage note and granting of a mortgage. It involves the transfer of an interest in a specifically identified immovable property from the mortgagor to the mortgagee for the purpose of securing repayment of a loan. There are different types of mortgages that vary based on factors like possession and title transfer of the mortgaged property.

1. CHENNAI
3rd 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 real
3rd 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
CHENNAI
3rd 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
CHENNAI
3rd Floor, ‘Creative Enclave’,
Sec. 58 of the Transfer of Property Act, 1882 defines mortgage
148-150, 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. CHENNAI
3rd 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
CHENNAI
3rd Floor, ‘Creative Enclave’,
The first thing to note is that a mortgage is a transfer of
148-150, 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
CHENNAI
3rd Floor, ‘Creative Enclave’,
The second point is that the property must be
148-150, 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
CHENNAI
3rd Floor, ‘Creative Enclave’,
Another characteristic of a mortgage is that the
148-150, 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
CHENNAI
3rd 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 possession
3rd 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
CHENNAI
3rd Floor, ‘Creative Enclave’,
Under such Mortgage, the mortgagor apparently
148-150, 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
CHENNAI
3rd Floor, ‘Creative Enclave’,
In a usufructuary Mortgage, the
148-150, 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
CHENNAI
3rd 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
CHENNAI
3rd 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 combination
3rd 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. CHENNAI
3rd 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