Glossary Definition of the term “Mortgage” defines it as-
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.
Essential Elements for a Mortgage –
- Mortgagor
- Mortgagee
- Mortgage-money
- Mortgage-Deed
The transferor is called the “mortgagor”, the transferee is called the “mortgagee”; the principal money and interest of which payment is secured for the time being are called the “mortgage-money”, and the instrument (if any) by which the transfer is affected is called a “mortgage-deed”.
Essentials of Mortgage-
The essentials of Mortgage are summarised as under:
i) There must exist a Specific Immovable Property.
ii) There must be a consideration of mortgage which may be in the form of-
a) money advanced or to be advanced by way of loan, or
b) an existing or future debt, or
c) and the performance of the contract resulting into a rise of a pecuniary liability.
iii) The immovable property must have to be transferred for the purpose of securing the payment of money advanced or to be advanced by way of loan, or for the purpose of securing the performance of the repayment of loan with interest (i.e. mortgage-money)
iv) There must exist two parties to the mortgage i.e. the mortgagor and the mortgagee.
v) The parties to the mortgage must be competent to contract for the mortgage Deed as per the provisions of the applicable laws of the respective countries.
A mortgagor is a person who gives his property as mortgage as security for the payment of loan. The transaction is of a contractual nature, and therefore, such transaction creates some rights and liabilities or obligations.
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