Understanding Transfer of Property Act Chandar 1658

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In this video, we will learn about the Transfer of Property Act, Chandar 1658. This section deals with how a mortgage can transfer movable property. First, let’s understand the concept in simple words. After that, we will dive into the details of this section.

What is a mortgage?

A mortgage refers to when a person takes a loan by keeping their immovable property as collateral. Immovable property includes assets like houses and land. You lend me some money after looking at my property, and I promise to return the money to you when you return my property. This is called a mortgage. Just like we can mortgage our immovable property, we can also mortgage our movable property, such as mobile property. If the property is mobile, we use it as collateral. If the property is immovable, like a house or land, you can take possession of it if I fail to return the money. However, it is not necessary to mortgage our movable property in every mortgage. In some cases, we may deposit the title deed as security. In some cases, the property may already be in my possession, but we specify it in the mortgage deed.

Types of Mortgages

There are various types of mortgages, as mentioned in this section. Some of them are:

  • Simple Mortgage
  • Mortgage by Conditional Sale
  • English Mortgage

It is important to note that in every mortgage, we need not give our movable property as collateral. In some cases, we may deposit a title deed as security. In some cases, I may already have possession of the property, but we specify it in the mortgage deed. The mortgagee takes possession of the property after looking at it, and we improve the property through the loan. This applies to specific movable properties as well. We should be aware of which mobile property we are mortgaging. For example, I have a house in Allahabad. I have specified that the property is mortgaged with Moradhwaj Central. Moradhwaj is the specific movable property. In this case, we have covered the property with Moradhwaj.

Mortgage is the Transfer of Interest

A mortgage is the transfer of interest on property. We are not making you the owner of our property. We are transferring some interest to you in exchange for the mortgage. Sometimes, we may transfer the complete interest to you through a complete ownership transfer. However, in some cases, we may not transfer the new interest. It depends on how we are working. The interpretation depends on the accused or the person dependent on this section. The interest varies depending on the performance of the engagement. The performance of an engagement can be in the form of an agreement or a contract. We secure it from the market. We give rise to give and take. We may also advance and take advantage.

Existing and Future Debt

If there is already a debt that I have to repay to you, you can ask for some collateral to secure it. This collateral can be in the form of a new movable property that we give you. This is possible in the case of an existing liability or future debt. If I owe you some money that I have to repay, you can secure it by asking for some collateral. You may also take some advance for the loan you are taking and give me your immovable property. In return, I will give you some specific movable property. This is how the transaction works. You may ask for my collateral to secure the debt that I owe to you. This collateral will be in the form of a mortgage.

Performance of Engagement

Performance of engagement refers to carrying out a contract or agreement. It can also mean performing a specific cord or instrument from the market. The give-rise to liability occurs when we break the contract. In such cases, the performance can be in the form of giving you back your collateral along with the benefits gained from it. Sometimes, it may also include the amount of the title deposit. The transfer of interest occurs if we mortgage with you. The ownership of the land is still with Morad. We still have the vested reminder from Morya. We are still the owners of the property. We are the borrower, and we are giving you our immovable property on mortgage. We have specified that the mortgage money is for Morad. The instrument is the legal document on which our mortgage transaction is based. This is how the transaction of mortgage works.

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