Mortgage 

         "A mortgage is the transfer of an interest in the 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. [Section 58(a) of Transfer of Property Act,1882]


Kinds of Mortgage : 

 There are Six Types of Mortgage which are as follows -

1) Simple mortgage

2) Mortgage by conditional sale

3) Usufructuary mortgage


4) English mortgage

5) Mortgage by deposit of title-deeds

6) Anomalous mortgage.


What is Usufructuary Mortgage? 

       
              According to Section 58 (d) Where the mortgagor delivers possession or expressly or by implication binds himself to deliver possession of the mortgaged property to the mortgagee, and authorises him to retain such possession until payment of the mortgage-money, and to receive the rents and profits accruing from the property or any part of such rents and profits and to appropriate the same in lieu of interest or in payment of the mortgage-money, or partly in lieu of interest or partly in payment of the mortgage-money, the transaction is called a usufructuary mortgage and the mortgagee a usufructuary mortgagee.



Essentials of Usufructuary mortgage - 


(1)  No title is given to the mortgagee.


(2)  Mortgagor has given possession and hence mortgagee enjoys a right to usufruct.


(3)  Mortgagor has not given any personal security a right to sale a foreclosure toy the mortgagee.


Characteristics of Usufructuary mortgage - 


(i) Delivery of possession of immovable property, or an express or implied undertaking on the part of the mortgagor to deliver it;

(ii)  The enjoyment of the usufruct  by the mortgage until all his dues under the mortgage are paid off;

(iii) The mortgage does not incur any personal liability to repay the money; and

(iv) There be no personal liability to pay there is forfeiture and therefore, The remedies of foreclosure or sale  are not available to the mortgagee


See also...

Mortgage: Rights of a Mortgagee | Property Law

Mortgage: Liabilities of the Mortgagor | Transfer of Property

Mortgage: Rights of Mortgagor | Property Law

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