Mortgage is specified 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 purpose of protecting the payment of cash advanced or to be advanced by way of loan, an existing or future financial obligation, or the efficiency of an engagement which may generate a pecuniary (financial) liability. - The transferor is called a mortgagor, the transferee a mortgagee; the principal 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 benefits 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 independently or concurrently (Section 61).
- Right of usufructuary mortgagor to recover belongings (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 arrangements are discussed as follows:

Right of Mortgagor to Redeem (Section 60).
- This arrangement provides that upon providing affordable notification regarding the specified time and area, the mortgagor has the entitlement to redeem the home loan by paying the impressive home mortgage quantity and: - Require the mortgagee to provide the mortgage-deed and the mortgaged residential or commercial property and documents 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 third individual at his own expense by the mortgagee at the mortgagor's desire or get a recognition 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 provision mentioned in the mortgage-deed which has a result of preventing or hampering the right to redemption is void as a clog on redemption.
Sant Ram v. Labh Singh (1964 ), SC has held that that a specification in a home loan deed that the mortgagor would lose his right to redeem if he did not repay the mortgage quantity within a specific period was an unreasonable blockage on the right to redemption. The court highlighted that the right to redeem is a statutory right and can not be limited in an unjust or unreasonable manner.

Right to Transfer to the 3rd Party (Section 60A) - According to this section, the mortgagor has the right to request the transfer of both the home mortgage deed and the mortgaged residential or commercial property to a third celebration according to the mortgagor's preference.
- If the mortgagor has actually satisfied his commitment by paying the home mortgage amount, it is required for the mortgagee to adhere to this request.

- The mortgagor, exercising their right to redemption, can, at their own expenditure, request to inspect and acquire copies or extracts of the files pertaining to the mortgaged residential or commercial property and the home loan deed held by the mortgagee, upon successfully repaying the expenditures sustained by the mortgagee on their behalf, at any sensible time.

- In the lack of a contractual arrangement, when multiple mortgages are carried out in favor of the exact same mortgagee, the mortgagor can redeem one or more of these home mortgage deeds all at once or any one deed separately upon payment of the outstanding fees for the particular home loan( s).

- In a usufructuary mortgage, the mortgagor has a right to recuperate belongings of the mortgage deed from the mortgagee - Where the mortgagee is authorised to pay himself the mortgage-money from the leas and profits of the residential or commercial property when such cash is paid.
- Where the mortgagee is authorised to pay himself from such leas and earnings or arty part thereof a part just of the mortgage-money, when the term (if any), prescribed for the payment of the mortgage-money has expired and the mortgagor pays or tenders to the mortgagee the mortgage-money or the balance thereof or transfers it in Court as hereinafter provided.

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

- If a residential or commercial property is mortgaged, and the mortgagee makes enhancements 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 privilege exists unless there is a specific contract mentioning otherwise.
- If the mortgagee makes necessary improvements to preserve the residential or commercial property from damage or wear and tear, to maintain the residential or commercial property's worth as security, or in compliance with a lawful order from a federal government authority, the mortgagor is normally responsible for paying the expense of those enhancements. - This cost is contributed to the principal quantity of the home loan, and the mortgagor should pay interest on it at the very same rate as the primary quantity.

- If a mortgaged residential or commercial property remains in the belongings of the mortgagee and has a lease around, and the mortgagee restores the lease during the home mortgage period, the mortgagor has the right to get the benefits of that lease renewal, unless there is a particular provision in the mortgage agreement that states otherwise.

- In the absence of an agreement to the contrary, the mortgagor shall be deemed to contract with the mortgagee: - That the interest which the mortgagor professes to move to the mortgagee subsists, which the mortgagor has power to transfer the exact same.
- That the mortgagor will safeguard, or, if the mortgagee remain in possession of the mortgaged residential or commercial property, enable him to protect, the mortgagor's title thereto.
- That the mortgagor will, so long as the mortgagee is not in ownership of the mortgaged residential or commercial property, pay all public charges accumulating due in respect of the residential or commercial property.
- In the case where the mortgaged residential or commercial property is a lease, it is necessary that the lease specified in the lease, the terms and conditions detailed in the lease agreement, and any commitments binding upon the lessee have actually all been fully met, carried out, and abided by up to the point when the mortgage was initiated. - Furthermore, the mortgagor is obligated, as long as the home loan security remains valid and the mortgagee is not in possession of the mortgaged residential or commercial property, to continue paying the lease as stated in the lease. If the lease is renewed, the mortgagor must also adhere to the regards to the renewed lease, fulfill the conditions specified therein, and honor any contracts that use to the lessee.

While in legal belongings of the residential or commercial property, the mortgagor can make the lease, which will be binding on the mortgagee unless otherwise specified in the home loan. - The lease made shall be dealt with in a routine way of management of the residential or commercial property and based on the customs and local law.
- The very best rent shall be acquired, without any promise of premium or condition of advance payment.
- It will not contain an agreement for renewal.
- The lease will take result from no longer than six months from the day of development of the lease.
- In the case of the lease of a building with or without land, the lease will not exist for more than 3 years, and the lease shall include a covenant for payment of the rent and a condition of re-entry on the rent not being paid within a time therein specified

- Based upon this arrangement, 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 irreversible damage to the residential or commercial property, specifically if such damage would render the residential or commercial property insufficient as security for the home loan.

Liabilities Of a Mortgagor

Covenant for the Title - In a situation where the mortgagor has actually participated in an agreement with the mortgagee to transfer the residential or commercial property, and this contract includes a guarantee worrying 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 against the mortgagor.
- In this action, the mortgagee can look for not just the repayment of the principal quantity but also declare damages for any losses incurred as a result of the defective title.

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

- The mortgagor is accountable if he acts in a way that leads to waste of residential or commercial property or destroys or hurts the residential or commercial property, minimizing its worth and making it inadequate for security.
- Waste is of two types: Permissive Waste: It is the little waste for which the mortgagor is not accountable for; like failure to maintain ordinary repair work.
Active Waste: When destruction of residential or commercial property triggers greater waste, reducing the value of the residential or commercial property, the mortgagor is accountable.

- If improvements are made to the mortgaged residential or commercial property during the term of the home loan and they are essential, the mortgagor is responsible for covering the costs incurred for these enhancements. - In cases where improvements are necessary to avoid the residential or commercial property from being damaged, and these improvements are brought out by the mortgagee, the mortgagor is bound to cover the expense of these improvements. This cost is added to the original mortgage amount, together with the principal, unless there is a specific contract mentioning otherwise.
If the mortgagee is in ownership of the residential or commercial property and covers the residential or commercial property taxes, the mortgagor is accountable for repaying the mortgagee for these costs. - However, if the residential or commercial property is in the mortgagor's possession, they are obligated to pay all residential or commercial property taxes and any public charges related to the residential or commercial property.