What is an English Mortgage
As per Section 58(c) Where the mortgagor binds himself to repay the mortgage money on a certain date and transfers the mortgaged property absolutely to the mortgagee, but subject to a proviso that he will re-transfer it to the mortgagor upon payment of the mortgage money as agreed, the transaction is called an English mortgage.
Elements of English Mortgage
1. The mortgagor takes a personal liability to repay the mortgage - money
2. He promises to pay the mortgage money on a certain date
3. He transfers the mortgaged property absolutely to the mortgagee and
4. When the mortgagor pays back the mortgaged money to the mortgagee, he (mortgagee) re-transfers the property to him (mortgagor).
Illustrations of English Mortgage
'X' borrowed a certain amount on the basis of an undertaking that he will repay the mortgage money on a stipulated time and transfers his property situated in Chennai to Y He entered into an agreement to the effect that the transfer is absolute and on his default in payment the mortgagee Y has to reconvey the property upon payment made by X on the appointed day.
See Also
Explain the general principles relating to secured loans.
Sale of Immovable Property, Rights, and Liabilities of Buyer and Seller
Distinction Between English Mortgage and Mortgage by Conditional Sale
Difference between Corporeal Property and Incorporeal Property
0 comments:
Post a Comment