What are the rights and liabilities of a mortgagor and a mortgagee?

What are the rights and liabilities of a mortgagor and a mortgagee?

Every mortgage-deed leaves a right to the mortgagor and a corresponding liability for mortgagee and vice versa. Following are the rights given to a mortgagor given by the Transfer of Property Act, 1882: Right to redemption. Right to transfer mortgaged property to a third party instead of retransferring.

What are rights of the mortgagor?

A mortgagor is entitled to redemption only on the fulfilment of conditions agreed with the mortgagee. The mortgagor may require that, instead of re-transferring the property to himself, the mortgagee assigns the mortgage debt and transfers the mortgaged property to a third person as the mortgagor may direct.

What are the rights and liabilities of lessee?

Through the rights and liabilities, it is clear that a lessor must disclose facts and shall avoid interruptions while the lessee is leased the property. A lessee, on the other hand, is bound to take reasonable care of the property and at the same time pay his/her rent.

Who is mortgagor?

A mortgagor is a person or entity that borrows money to purchase real estate. Mortgagors can obtain loans from financial institutions or individual lenders and are often evaluated based on their credit history and the quality of collateral they post.

What is marshalling and contribution?

Marshalling is the right of subsequent mortgagees whereas contribution is with respect to mortgagors. Marshalling is if a creditor has multiple funds to realize his debt, he must first pursue the multiple funds instead of prejudicing the creditor who is secured only by one fund.

Is the bank the mortgagee or mortgagor?

The mortgagee is basically the bank that gave you a mortgage, and you are the mortgagor. Technically, the bank or lending institution is the legal owner of your home until you pay off your loan. The mortgagee can seize your home in the event you default.

Are banks mortgagee or mortgagor?

What Is a Mortgagee? A mortgagee is a lender: specifically, an entity that lends money to a borrower for the purpose of purchasing real estate. In a mortgage transaction, the lender serves as the mortgagee and the borrower is known as the mortgagor.

Can mortgagor sell mortgaged property?

According to section 58(b), in a simple mortgage, the mortgagor assures mortgagee that he shall repay the loan amount and in the event of default, he shall bind himself personally to sell the mortgaged property and thereby repay the loan amount.

What is the right of lessee?

The lessee is the party who gets the right to use an asset for a specific period and makes periodic payments to the lessor based on their initial agreement. If the subject of the lease is an apartment, the lessee must not make any structural changes without the permission of the lessor.

What are lessor rights?

A lessor has the right to see that the tenant pays rent on time, and abides by the terms of the lease. A lessor may evict a tenant, and may be able to keep all or part of the tenant’s security deposit if the tenant is behind on rent.

What is another word for mortgagor?

What is another word for mortgagor?

debtor borrower
deadbeat drawee
loanee nonpayer
pledger purchaser
risk welsher

What are foreclosure rights?

The right of foreclosure is a right available to a mortgagee to recover his outstanding money. The mortgagee has a right to obtain from a court a decree that the mortgagor should be absolutely debarred of his right to redeem the property, or a decree that the property be sold.

What are the liabilities of a mortgagor under the law?

Every mortgagor has certain liabilities to go along with their rights. Such is mentioned under Section 65 and 66 of the Transfer of Property Act, 1882. Liability to Transfer Interest [Section 65 (a)]: Every mortgagor has the liability to transfer interest during the subsistence of the debt.

What are the rights of a mortgagor in a mortgage?

The mortgagor is deemed to contract with the mortgagee that he will defend, of if the mortgagee be in possession of the mortgaged property, enable him to defend, the mortgagor’s title thereto. The mortgagee has a right to protect the title of the mortgagor because he is entitled to the full benefit of the security. 3.

What is the right of redemption in mortgage law?

Mortgagor’s right of redemption means it is his right to recover or get back the property after making payment of the loan. If the loan has been paid, the interest so transferred must be reversed to the mortgagor by the mortgagee. The mortgagee cannot therefore hold any interest in the mortgage property.

What are the rights of a mortgagor under transfer of Property Act?

The following are the rights given to a mortgagor granted by the Transfer of Property Act, 1882: – Right to Redemption (section-60): – It is one of the most important rights of a mortgagor granted under the section of the Act. This right ends when the mortagagor get his mortagaged property back.