Mortgage is a conveyance, assignment, or demise of real or personal estate as security for repayment or money borrowed; if the conveyance, assignment of demise be of land or any estate therein, the transaction is called a mortgage, notwithstanding that the creditor enters into possession; but the transfer of the possession of movable chattel to secure the repayment of a debt is called not a mortgage but a pledge.

A mortgage is 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. The transferor is called mortgagor, the transferee a mortgagee; the principal money and interest of which payment is secured for the time being are called the mortgage- money; and the instrument by which the transfer is effected is called a mortgage deed.

Simple Mortgage

Simple mortgage is a mortgage where, without delivering possession of the mortgaged property, the mortgagor binds himself personally to pay the mortgage-money, and agrees, expressly or impliedly, that, in the event of his failing to pay according to his contract, the mortgage shall have a right to cause the mortgaged property to be sold, and the proceeds of sale to be applied, so far as they may be necessary, in payment of the mortgage money, the transaction is called a simple mortgage, and the mortgage a simple mortgage.

Mortgage by conditional sale

Where the mortgagor ostensibly sells the mortgaged property on condition that, on default or payment of the mortgage money on a certain date, the sale shall become absolute, or on condition that, on such payment being made the sale shall become void, or on condition that, on such payment being made, the buyer shall transfer the property to the seller, transaction is called a mortgage by conditional sale, and the mortgage by conditional sale, and the mortgagee a mortgagee by conditional sale.

Related Legal term - Tacking mortgage

Back to HOME


The information on this website is made available for general informational purposes only and should not be considered as legal advice. We attempt to keep the information so posted in this site , up to date and correct, but we make no representations or warranties of any kind, express or implied, about the comprehensiveness, accuracy or consistency with respect to the information contained herein. Any reliance you place on such information is therefore strictly at your own risk.

People receiving information on this web site should not act upon the information provided without seeking professional legal advice. Any exchange of information on this web site does not constitute an attorney-client relationship.




The copyright with regard to the website and its content, vests with – © www.bizandlegis (2011). All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited. You may not, except with our express written permission, distribute or commercially exploit the content. Nor may you transmit it or store it in any other website or other form of electronic retrieval system.

Get a Legal Service from us - Contact