Mortgage is defined by Section 58 (a) of the Transfer of Residential Or Commercial Property Act, 1882 (TPA) as a transfer of an interest in particular immoveable residential or commercial property for the function of protecting the payment of cash advanced or to be advanced by method of loan, an existing or future financial obligation, or the efficiency of an engagement which may give increase to a budgeting (financial) liability. - The transferor is called a mortgagor, the transferee a mortgagee; the primary cash 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.

Rights of a Mortgagor

The TPA provides privileges to a mortgagor in a mortgage-deed under Section 60 - 66, which are as follows:

- Right of mortgagor to redeem (Section 60).
- Right to transfer to the 3rd party (Section 60A).
- Right to evaluation and production of files (Section 60B).
- Right to redeem separately or all at once (Section 61).
- Right of usufructuary mortgagor to recover possession (Section 62).
Accession to mortgaged residential or commercial property (Section 63).
Improvements to mortgaged residential or commercial property (Section 63A).
Renewal of Mortgaged Lease (Section 64).
Implied Contracts by Mortgagor (Section 65).
- Mortgagor's power to lease (Section 65A).
Waste by mortgagor in possession (Section 66)]

These provisions are described as follows:

Right of Mortgagor to Redeem (Section 60).
- This arrangement offers that upon providing reasonable notification regarding the specified time and location, the mortgagor has the entitlement to redeem the home mortgage by paying the outstanding mortgage quantity and: - Require the mortgagee to deliver the mortgage-deed and the mortgaged residential or commercial property and files in his possession or under his power.
- Recover the belongings of the mortgaged residential or commercial property from the mortgagee.
- To get the residential or commercial property re-transferred to him or a 3rd individual at his own cost by the mortgagee at the mortgagor's desire or get an acknowledgement registered by the mortgagee extinguishing his right over the residential or commercial property.

Case Law:

- Stanley v. Wilde, (1899 ), the English Court of Appeal held that any arrangement mentioned in the mortgage-deed which has a result of preventing or restraining the right to redemption is void as an obstruction on redemption.
Sant Ram v. Labh Singh (1964 ), SC has held that that a terms in a home mortgage deed that the mortgagor would lose his right to redeem if he did not pay back the home loan quantity within a certain period was an unreasonable obstruction on the right to redemption. The court highlighted that the right to redeem is a statutory right and can not be restricted in an unjust or unreasonable manner.

Right to Transfer to the 3rd Party (Section 60A) - As per this section, the mortgagor possesses the right to request the transfer of both the home loan deed and the mortgaged residential or commercial property to a 3rd party based on the mortgagor's preference.
- If the mortgagor has fulfilled his responsibility by paying the home mortgage quantity, it is required for the mortgagee to adhere to this demand.

- The mortgagor, exercising their right to redemption, can, at their own expense, request to inspect and obtain copies or extracts of the documents relating to the mortgaged residential or commercial property and the home loan deed held by the mortgagee, upon successfully compensating the expenditures incurred by the mortgagee on their behalf, at any sensible time.

- In the lack of a legal arrangement, when multiple mortgages are performed in favor of the very same mortgagee, the mortgagor deserves to redeem one or more of these mortgage deeds concurrently or any one deed independently upon payment of the impressive dues for the specific home mortgage( s).

- In a usufructuary home loan, the mortgagor has a right to recuperate possession of the mortgage deed from the mortgagee - Where the mortgagee is authorised to pay himself the mortgage-money from the rents and revenues of the residential or commercial property when such money is paid.
- Where the mortgagee is authorised to pay himself from such leas and profits or arty part thereof a part just of the mortgage-money, when the term (if any), recommended for the payment of the mortgage-money has ended and the mortgagor pays or tenders to the mortgagee the mortgage-money or the balance thereof or deposits it in Court as hereinafter supplied.

- The mortgagor is entitled to the mortgaged residential or commercial property accession upon redemption, if any, throughout the home mortgage's continuation when in belongings of the mortgagee if a contract for the contrary does not exist.
- The mortgagee has no right to claim the accession when redeemed by the mortgagor.

- If a residential or commercial property is mortgaged, and the mortgagee makes improvements to the residential or commercial property while holding it as security, the mortgagor has a right to those improvements when they redeem the residential or commercial property. This entitlement exists unless there is a specific contract mentioning otherwise.
- If the mortgagee makes necessary enhancements to maintain the residential or commercial property from damage or degeneration, to keep the residential or commercial property's worth as security, or in compliance with a lawful order from a federal government authority, the mortgagor is typically accountable for paying the cost of those improvements. - This expense is added to the primary quantity of the home mortgage, and the mortgagor should pay interest on it at the very same rate as the principal quantity.

- If a mortgaged residential or commercial property is in the possession of the mortgagee and has a lease out there, and the mortgagee renews the lease throughout the home mortgage period, the mortgagor deserves to receive the benefits of that lease renewal, unless there is a specific arrangement in the mortgage contract that mentions otherwise.

- In the absence of a contract to the contrary, the mortgagor will be deemed to contract with the mortgagee: - That the interest which the mortgagor professes to move to the mortgagee subsists, and that the mortgagor has power to move the very same.
- That the mortgagor will defend, or, if the mortgagee remain in belongings of the mortgaged residential or commercial property, enable him to defend, the mortgagor's title thereto.
- That the mortgagor will, so long as the mortgagee is not in possession of the mortgaged residential or commercial property, pay all public charges accruing due in regard of the residential or commercial property.
- In the event where the mortgaged residential or commercial property is a lease, it is important that the lease defined in the lease, the terms and conditions laid out in the lease arrangement, and any commitments binding upon the lessee have all been fully fulfilled, carried out, and complied with as much as the point when the home mortgage was initiated. - Furthermore, the mortgagor is obligated, as long as the mortgage security remains valid and the mortgagee is not in belongings of the mortgaged residential or commercial property, to continue paying the rent as specified in the lease. If the lease is renewed, the mortgagor should also follow the regards to the renewed lease, satisfy the conditions defined therein, and honor any agreements that use to the lessee.

While in legal belongings of the residential or commercial property, the mortgagor can make the lease, which shall be binding on the mortgagee unless otherwise specified in the home mortgage. - The lease made shall be handled in a regular way of management of the residential or commercial property and according to the customs and local law.
- The finest rent shall be gotten, without any guarantee of premium or condition of advance payment.
- It shall not include an agreement for renewal.
- The lease shall take impact from no longer than 6 months from the day of formation of the lease.
- In the case of the lease of a building with or without land, the lease shall not exist for more than three years, and the lease shall include a covenant for payment of the rent and a condition of re-entry on the lease not being paid within a time therein defined

- Based on this provision, the mortgagor is usually not held accountable for any natural deterioration of the residential or commercial property. - However, the mortgagor should refrain from taking any actions that could result in devastating or permanent damage to the residential or commercial property, especially if such damage would render the residential or commercial property insufficient as collateral for the home mortgage.

Liabilities Of a Mortgagor

Covenant for the Title - In a scenario where the mortgagor has actually gotten in into a contract with the mortgagee to transfer the residential or commercial property, and this contract includes a warranty concerning the residential or commercial property's title, if it is subsequently found that the title of the mortgaged residential or commercial property is flawed or defective, the mortgagee has the legal right to initiate legal action versus the mortgagor.
- In this action, the mortgagee can look for not only the payment of the primary amount but also declare damages for any losses incurred as an outcome of the malfunctioning title.

- If it is determined that the residential or commercial property title held by the mortgagor is flawed or faulty, the mortgagor is accountable for compensating the mortgagee for any damages incurred.
- These damages typically cover the expenses and costs that the mortgagee has actually needed to bear in order to assert their rightful claim to the residential or commercial property title.

- The mortgagor is responsible if he acts in such a way that causes waste of residential or commercial property or destroys or hurts the residential or commercial property, decreasing its value and making it inadequate for security.
- Waste is of two types: Permissive Waste: It is the small waste for which the mortgagor is not accountable for; like failure to keep normal repair work.
Active Waste: When destruction of residential or commercial property causes higher waste, minimizing the value of the residential or commercial property, the mortgagor is liable.

- If improvements are made to the mortgaged residential or commercial property during the regard to the mortgage and they are essential, the mortgagor is accountable for covering the costs incurred for these improvements. - In cases where enhancements are vital to avoid the residential or commercial property from being damaged, and these enhancements are brought out by the mortgagee, the mortgagor is bound to cover the cost of these improvements. This expense is contributed to the initial mortgage quantity, together with the principal, unless there is a specific contract stating otherwise.
If the mortgagee is in possession of the residential or commercial property and covers the residential or commercial property taxes, the mortgagor is accountable for repaying the mortgagee for these expenditures. - However, if the residential or commercial property is in the mortgagor's possession, they are obliged to pay all residential or commercial property taxes and any public charges connected with the residential or commercial property.