Air Conditioner

In: Business and Management

Submitted By pkthakur
Words 1652
Pages 7
Professor: Mr. Manish

BY: Himanshu Bhatia JL12PGDM073 PGDM Sec -B

Mortgage
Mortgage has been defined in Section 58(a) of Transfer of Property Act as "the transfer of an interest in 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"
It works on the simple idea of lien over another's property and is effected as an instrument between the lender and borrower. The borrower seeks a loan against the security of his property. This is done by transferring an interest of the immovable property to the lender and it entails pecuniary/financial liability as well. The person who advances loan against security is referred to as the 'mortgagor' and the one who seeks loan is the "mortgagee".
Mortgages can be on any freehold or leasehold immovable property.
Definitions:
1. Debt / Mortgage Money: The principal borrowed from the lender. The borrower in addition to the principal has to pay the interest levied on it. 2. Redemption: It means that the interest transferred to the mortgagee during the transaction at the time of the execution of mortgage would be vested back in the mortgagor at the time of recovery. 3. Mortgage Deed: It is a legal instrument in accordance with the mortgage law in India and duly stamped under Indian Stamp Act, 1889. It is legally binding on both parties in the mortgage deal. It contains details of the property owner, location of the property, size of property, amount of mortgage, interest payable and time duration. It also contains conditions upon which loan is agreed against property.
Procedure of effecting a Mortgage 1. The mortgage deed is marked with the rights and obligations of both parties. 2. The borrower with receives…...

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