Mortgage and Charge [Sections 58 — 104]

Your family wants a home loan, and the bank asks you to sign papers making the flat its security. You still live in the flat, it is still yours, and yet the bank has a hold on it. What exactly did you transfer, and what can the bank do if the EMIs stop? The law of mortgage answers both, and it runs from section 58 to section 104 of the Transfer of Property Act 1882.

In two minutes

A mortgage is a transfer of an interest in specific immoveable property to secure a loan or other obligation; the mortgagor keeps a right to redeem, the mortgagee has remedies (foreclosure, sale, suit for money) that depend on the kind of mortgage, and a charge is a security created without a transfer of interest.

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