Mortgage Deed — Simple, English, Mortgage by Conditional sale, Usufructuary, mortgage

A small shop owner in Vashi needs a business loan and the bank asks for security over his shop. He does not want to sell the shop, yet he must give the bank something it can enforce. Is he handing over the shop, the possession, the rent, or merely a right to sell it if he defaults? The answer depends on which kind of mortgage the deed creates, and the wording of the deed decides.

In two minutes

A mortgage is a transfer of an interest in specific immovable property to secure a loan or other pecuniary liability; the Transfer of Property Act 1882 names five kinds plus an anomalous catch-all, and the drafter's job is to choose the kind and then write the clauses that make the security, possession, interest and redemption explicit.

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