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 specific immoveable residential or commercial property for the function of protecting the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may trigger a pecuniary (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 offers opportunities 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 recuperate ownership (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 ownership (Section 66)]

These provisions are explained as follows:

Right of Mortgagor to Redeem (Section 60).
- This provision offers that upon offering affordable notice relating to the specified time and location, the mortgagor has the privilege to redeem the mortgage by paying the exceptional home mortgage quantity and: - Require the mortgagee to deliver the mortgage-deed and the mortgaged residential or commercial property and files in his ownership or under his power.
- Recover the possession 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 provision discussed in the mortgage-deed which has an impact of avoiding or hindering the right to redemption is void as an obstruction on redemption.
Sant Ram v. Labh Singh (1964 ), SC has held that that a stipulation in a mortgage deed that the mortgagor would lose his right to redeem if he did not repay the home loan amount within a particular duration was an unreasonable clog 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 way.

Right to Transfer to the Third Party (Section 60A) - As per this area, the mortgagor possesses the right to ask for the transfer of both the home loan deed and the mortgaged residential or commercial property to a 3rd celebration according to the mortgagor's choice.
- If the mortgagor has fulfilled his responsibility by paying the home loan amount, it is obligatory for the mortgagee to abide by this demand.

- The mortgagor, exercising their right to redemption, can, at their own expense, demand to inspect and get copies or extracts of the documents referring to the mortgaged residential or commercial property and the mortgage deed held by the mortgagee, upon successfully reimbursing the expenses sustained by the mortgagee on their behalf, at any affordable time.

- In the lack of a contractual arrangement, when multiple home mortgages are carried out in favor of the very same mortgagee, the mortgagor deserves to redeem one or more of these home loan deeds at the same time or any one deed individually upon payment of the outstanding charges for the specific home loan( s).

- In a usufructuary home mortgage, the mortgagor has a right to recuperate belongings of the home mortgage deed from the mortgagee - Where the mortgagee is authorised to pay himself the mortgage-money from the rents and earnings of the residential or commercial property when such money is paid.
- Where the mortgagee is authorised to pay himself from such rents and revenues or arty part thereof a part only of the mortgage-money, when the term (if any), recommended 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 offered.

- The mortgagor is entitled to the mortgaged residential or commercial property accession upon redemption, if any, during the home loan's continuation 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 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 particular contract stating otherwise.
- If the mortgagee makes required improvements to protect the residential or commercial property from damage or degeneration, to maintain the residential or commercial property's value as security, or in compliance with a lawful order from a government authority, the mortgagor is usually accountable for paying the expense of those improvements. - This cost is included to the primary quantity of the home mortgage, and the mortgagor must pay interest on it at the same rate as the primary quantity.

- If a mortgaged residential or commercial property remains in the belongings of the mortgagee and has a lease out there, and the mortgagee renews the lease during the home mortgage duration, the mortgagor has the right to receive the benefits of that lease renewal, unless there is a specific provision in the home mortgage contract that mentions otherwise.

- In the lack of a contract to the contrary, the mortgagor will be deemed to contract with the mortgagee: - That the interest which the mortgagor proclaims to transfer to the mortgagee subsists, and that the mortgagor has power to move the same.
- That the mortgagor will protect, or, if the mortgagee be in ownership of the mortgaged residential or commercial property, allow him to safeguard, 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 case where the mortgaged residential or commercial property is a lease, it is essential that the lease defined in the lease, the conditions described in the lease contract, and any commitments binding upon the lessee have actually all been fully fulfilled, carried out, and followed up to the point when the mortgage was started. - Furthermore, the mortgagor is bound, as long as the mortgage security stays valid and the mortgagee is not in possession of the mortgaged residential or commercial property, to continue paying the lease as specified in the lease. If the lease is renewed, the mortgagor needs to likewise abide by the regards to the restored lease, meet the conditions defined therein, and honor any agreements that use to the lessee.

While in legal ownership 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 routine way of management of the residential or commercial property and based on the customs and regional law.
- The finest rent shall be gotten, without any pledge of premium or condition of advance payment.
- It shall not include an agreement for renewal.
- The lease shall work from no longer than six months from the day of formation of the lease.
- In the case of the lease of a structure with or without land, the lease shall not exist for more than three years, and the lease will consist of a covenant for payment of the rent and a condition of re-entry on the rent not being paid within a time therein defined

- Based on this arrangement, the mortgagor is typically not delegated any natural wear and tear of the residential or commercial property. - However, the mortgagor must avoid taking any actions that could lead to disastrous or irreparable 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 circumstance where the mortgagor has participated in a contract with the mortgagee to transfer the residential or commercial property, and this contract includes a warranty worrying the residential or commercial property's title, if it is consequently discovered 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 primary amount but also declare damages for any losses incurred as a result of the defective title.

- If it is figured out that the residential or commercial property title held by the mortgagor is flawed or faulty, the mortgagor is responsible for compensating the mortgagee for any damages sustained.
- These damages usually cover the expenditures 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 responsible if he acts in such a way that results in waste of residential or commercial property or destroys or hurts the residential or commercial property, lowering its worth and making it inadequate for security.
- Waste is of 2 types: Permissive Waste: It is the little waste for which the mortgagor is not accountable for; like failure to keep ordinary repairs.
Active Waste: When damage of residential or commercial property causes higher waste, decreasing the value of the residential or commercial property, the mortgagor is liable.

- If enhancements are made to the mortgaged residential or commercial property during the regard to the home mortgage and they are needed, the mortgagor is responsible for covering the expenditures incurred for these improvements. - In cases where improvements are necessary to prevent the residential or commercial property from being damaged, and these enhancements are performed by the mortgagee, the mortgagor is obligated to cover the cost of these enhancements. This cost is contributed to the initial mortgage amount, along with the principal, unless there is a specific agreement mentioning otherwise.
If the mortgagee is in belongings of the residential or commercial property and covers the residential or commercial property taxes, the mortgagor is accountable for reimbursing the mortgagee for these expenses. - However, if the residential or commercial property remains in the mortgagor's ownership, they are obliged to pay all residential or commercial property taxes and any public charges related to the residential or commercial property.