For each of the scenario mentioned below, applying the provisions of Transfer of Property Act, 1882 and identify the type of mortgage with reasoning: Subham borrowed money from a bank and mortgaged his house as security
CS Professional · Drafting, Pleadings and Appearances · PYQS · June 2026
For each of the scenario mentioned below, applying the provisions of Transfer of Property Act, 1882 and identify the type of mortgage with reasoning: Subham borrowed money from a bank and mortgaged his house as security without transferring possession. He agreed that if he failed to repay, the bank could approach the court to sell the property and recover dues. He retained ownership and possession.
Answer & Explanation:
Type: Simple Mortgage Reason: Ownership and possession remain with Shubham. No transfer of possession to the bank. The bank only has the right to approach the court for sale in case of default. These are the defining features of a simple mortgage under Section 58(b) of Transfer of Property Act, 1882 (TPA).
Topics: Transfer of Property Act, 1882
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