A mortgage is essential for some kinds of bank loans. If you are a mortgagor you have some rights you should know about these rights. Let’s know some rights of a mortgagor which as follows:
Rights of a Mortgagor
There are 4 major rights of a mortgagor and they are:
- Right of redemption
- Transfer of the third party
- Inspection and production of documents
- Additions to property
1. Right of redemption: The mortgagor has a right to redeem the mortgaged property if he:
- Pays or tenders the mortgage money on the due date at the proper place and time, and
- Provided the right has not been terminated on account of the act of the parties or by a decree of the court.
On account of this right the mortgagor can ask the mortgagee:
- To deliver the mortgage deeds all other documents relating to the mortgaged property which are in the possession of the mortgagee.
- To deliver the possession of the property in case the mortgagee has its possession.
- To re-transfer the mortgaged property to him or to any other person as he may direct at eh mortgagor’s cost.
The right of redemption is indivisible. The mortgaged property cannot be redeemed in part. This right cannot be declared void because otherwise, a mortgage would cease to be a mortgage and become an absolute transfer.
But the mortgagor must bring the suit for redemption within three years of its becoming due (Sec. 60).
2. Transfer of the third party: The mortgagor can ask the mortgagee to transfer to a third party the mortgaged property instead of re-transfer to the mortgagor (Sec. 61).
The existence of the following conditions is necessary for the exercise of this right:
- The right of redemption is still subsisting.
- The mortgagee is not in the possession of the property.
- The right to get it re-transferred is a clear condition in the mortgage deed.
This right has been included so that the mortgagor may find a financier in times of difficulty and save himself from the mortgagee.
3. Inspection and production of documents: The mortgagor with the right of redemption can inspect and make copies of all document s of title which are in the mortgagee’s custody or power (Sec. 60B).
4. Additions to property: Where the mortgaged property is in the possession of the mortgagee and he has made some additions to or improvements in the property, the mortgagor on redeeming the property, is entitled to all such additions or improvements, in the absence of any contract to the contrary.
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