Q. 2 Describe all the types of mortgage?

TYPES OF MORTGAGE:

Following are the various kinds of mortgage:

·                     SIMPLE MORTGAGE:

Simple mortgage is such mortgage where the mortgager gets loan without delivering possession of the property and bind himself personally to pay the mortgage money and agrees expressly or impliedly in case of failure to return the money to creditor, the creditor cannot directly sell the property. The sale must be through the intervention of the court.

   USUFRUCTUARY MORTGAGE:

Usufructuary mortgage is such mortgage where the debtor gets loan from the creditor in exchange of the property and authorized the creditor to hold the property until the payment of the loan is given.

MORTGAGE BY CONDITIONAL SALE:

In this type of mortgage, there are certain conditions which were mutually agreed by the mortgager and mortgagee, if the mortgager fails to pay his debt to mortgagee on a certain period, the sale of the property shall become absolute.

ENGLISH MORTGAGE:

English mortgage is such mortgage where the mortgager binds himself to repay the loan on a given time, but he also transfers his property to the mortgagee, there is the promise between the parties that mortgagee will re transfer the property to mortgager after receiving the payment of loan back.

·                     MORTGAGE BY DEPOSIT OF TITLE DOCUMENTS:

In this type of mortgage, a mortgager deposits the title documents of the property to mortgagee with the intention to keep this title document as security and this transaction is called a mortgage by deposit of title documents. It is mostly perform by banks.

                                                                                      This FAQ is prepared by Advocate Sadia Saman