Mortgage :

Section 58(a) of the Transfer of Property Act, 1882 defines a mortgage as follows:

‘A mortgage is the transfer of interest in specific immoveable property, for the purpose of securing the payment of money advanced or to be advanced by way of loan, on existing or future debt or the performance of an engagement which may give rise to a pecuniary liability.’

The transferor is called the ‘mortgagor’ and the transferee a ‘mortgagee’ the principal money and interest of which payment is secured is called mortgage money and the instrument by which the transfer is effected is called the ‘mortgage deed’.

(a) Ingredients of Mortgage

From the above definition of mortgage, the following are the requirements of a mortgage:

(i) There should be transfer of interest in the property by the mortgagor (the owner or lessor).

(ii) The transfer should be to secure the money paid or to be paid by way of loan.

(b) Mortgage of Land – Various Types

The Transfer of Property Act contemplates six different kinds of mortgages. They are:

(i) Simple mortgage

(ii) Mortgage by conditional sale

(iii) Usufructuary mortgage

(iv) English mortgage

(v) Mortgage by deposit of title deeds (Equitable mortgage)

(vi) Anomalous mortgage