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Consider the following statements in the context of the rights of a mortgagee in possession under the…

A mortgagee may incur necessary expenses to support the mortgagor's title and to preserve the property from destruction, forfeiture or sale. All four purposes are covered by…

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Consider the following statements in the context of the rights of a mortgagee in possession under the Transfer of Property Act, 1882:-
A mortgagee may spend such money as is necessary.
(i) For supporting the mortgagor's title to the property.
(ii) For the preservation of the mortgaged property from forfeiture.
(iii) For the preservation of the mortgaged property from destruction.
(iv) For the preservation of the mortgaged property from sale.
Which of the above statements are correct?

Select one answer
Answer and explanation

Correct answer A

A mortgagee may incur necessary expenses to support the mortgagor's title and to preserve the property from destruction, forfeiture or sale. All four purposes are covered by section 72. For these purposes, expenditure is not treated as necessary unless the mortgagor has first been called upon and has failed to take proper and timely steps.

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