how many types of Mortgage as per Transfer of Property Act

Question

Accepted Answer

There are two types of mortgages as per the Transfer of Property Act.

The two types of mortgages are simple mortgage and mortgage by conditional sale.
In a simple mortgage, the mortgagor (borrower) promises to repay the loan and transfers the property to the mortgagee (lender) as security.
In a mortgage by conditional sale, the mortgagor sells the property to the mortgagee on the condition that the sale will be void if the mortgagor repays the loan within a certain period.
In both types of mortgages, the mortgagee has the right to sell the property to recover the loan amount if the mortgagor fails to repay.
Example: A person takes a loan from a bank and offers his house as security. This is a simple mortgage.
Example: A person sells his property to another person with the condition that if the loan is repaid within 5 years, the sale will be void. This is a mortgage by conditional sale.

Accepted Answer

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