Rights and Liabilities of Mortgagor in India

Rights and Liabilities of a Mortgagor under Indian law, primarily governed by the Transfer of Property Act, 1882 (Sections 58 to 104).

Mortgagor:

The person who creates a mortgage by transferring interest in his immovable property as security for a loan or debt.

Right	Description
Right to Redeem	Mortgagor has the absolute right to redeem the mortgaged property by paying the debt anytime before the sale of the property. (Right of redemption)
Right to Possession (in some mortgages)	In mortgage by conditional sale, mortgage by deposit of title deeds, or mortgage by simple mortgage, mortgagor usually retains possession unless otherwise agreed.
Right to Receive Surplus	If the property is sold to recover debt, any amount exceeding the debt must be returned to the mortgagor.
Right to Insure Property	Mortgagor has the right to insure the property for its full value unless otherwise agreed.
Right to Prevent Waste	Mortgagor must not cause any damage or waste to the property that lowers its value.
Right to Transfer Interest	Mortgagor can transfer his interest in the mortgaged property, but the mortgage rights continue.
Right to Notice of Sale	Mortgagor should be given reasonable notice before the sale of mortgaged property.

Liability	Description
Liability to Pay Debt	Mortgagor must repay the secured debt as per the terms agreed with the mortgagee.
Liability to Maintain Property	Mortgagor is responsible for maintaining the mortgaged property in good condition.
Liability to Allow Inspection	Mortgagor should allow the mortgagee or their agents to inspect the property if agreed.
Liability for Waste	Mortgagor is liable for any willful or negligent damage to the property.
Liability to Pay Taxes and Charges	Mortgagor must pay property taxes, municipal charges, and keep the property free from encumbrances.
Liability on Default	If the mortgagor fails to repay, the mortgagee can initiate foreclosure or sale proceedings.

Right to Redeem is Fundamental: The mortgagor’s right to redeem is protected by law and cannot be waived.

Partial Redemption: Mortgagor may redeem part of the property if agreed.

Transfer of Mortgaged Property: If mortgagor sells the property, the buyer takes it subject to the mortgage.

Foreclosure & Sale: If mortgagor defaults, mortgagee may seek foreclosure or sale of the property to recover dues.

Category	Details
Who is Mortgagor?	Owner transferring interest to secure a loan
Key Rights	Right to redeem, possession, surplus, insure
Key Liabilities	Repay debt, maintain property, pay taxes, no waste
Protection	Right to redeem is inalienable and absolute

Do write to us if you need any further assistance.

Your Message

Load more comments