Types of Mortgage as per Transfer of Property Act, 1882

The Transfer of Property Act, 1882 (TPA) recognizes the following types of mortgage:

  • Simple mortgage: In a simple mortgage, the mortgagor retains possession of the property. The mortgagee has the right to sell the property if the mortgagor fails to repay the loan.
  • Usufructuary mortgage: In a usufructuary mortgage, the mortgagee takes possession of the property and enjoys the fruits of the property. The mortgagor is still the legal owner of the property, but they cannot enjoy the fruits of the property.
  • English mortgage: In an English mortgage, the mortgagee takes possession of the property, but is not entitled to enjoy the fruits of the property. The mortgagor is still the legal owner of the property, but they cannot use the property.
  • Equitable mortgage: In an equitable mortgage, the mortgagor does not transfer legal title to the property to the mortgagee, but the mortgagee has an equitable right to the property. This means that the mortgagee can enforce their rights against the property even if the mortgage is not registered.

MCQs on Types of Mortgage

Here are some MCQs on the topic of Types of Mortgage as per the TPA:

  1. Which of the following is not a type of mortgage?
    • Simple mortgage
    • Usufructuary mortgage
    • English mortgage
    • Equitable charge
  2. In which type of mortgage does the mortgagor retain possession of the property?
    • Simple mortgage
    • Usufructuary mortgage
    • English mortgage
    • Equitable mortgage
  3. In which type of mortgage does the mortgagee take possession of the property and enjoy the fruits of the property?
    • Simple mortgage
    • Usufructuary mortgage
    • English mortgage
    • Equitable mortgage
  4. In which type of mortgage does the mortgagee take possession of the property but is not entitled to enjoy the fruits of the property?
    • Simple mortgage
    • Usufructuary mortgage
    • English mortgage
    • Equitable mortgage

Answers to the MCQs:

  1. The answer is (d). An equitable charge is not a type of mortgage. It is a security interest that is created without transferring legal title to the property.
  2. The answer is (a). In a simple mortgage, the mortgagor retains possession of the property.
  3. The answer is (b). In a usufructuary mortgage, the mortgagee takes possession of the property and enjoys the fruits of the property.
  4. The answer is (c). In an English mortgage, the mortgagee takes possession of the property but is not entitled to enjoy the fruits of the property.