Simple Mortgage MeaningQuestion asked by a Law Student:-

Explain the difference between simple mortgage and mortgage by deposit of title deeds. Are the documents of title not kept with the mortgagee in case of simple mortgage?

Answer by WritingLaw:-

A mortgage as per section 58 of Transfer of Property Act is transfer of an interest in immovable property for securing payment of debt.

On the expiration of due date it becomes duty of mortgagor to repay the amount of loan to mortgagee and redeem the property mortgaged.

As far as simple mortgage is concerned, No property is being delivered to the mortgagee. The mortgagor makes himself personally liable for payment of debt or loan.

If mortgagor does not repay the amount then mortgagee cannot liquidate or sell the property without the consent of the court. Mortgagee needs to apply to court for consent to sell property in order to recover money. Therefore the money can be recovered by a money decree.

Note- Mortgagor only pledges his property as a security and do not give any deeds to mortgagee.