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The mortgagor retains possession, personally promises to pay the mortgage money, and agrees that on…

The combination of personal liability, retained possession and a right to cause sale on default is a simple mortgage under section 58(b). The statutory definition does not…

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The mortgagor retains possession, personally promises to pay the mortgage money, and agrees that on default the mortgagee may cause the property to be sold. Which kind of mortgage does section 58 of the Transfer of Property Act, 1882 define by those features?

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Answer and explanation

Correct answer C

The combination of personal liability, retained possession and a right to cause sale on default is a simple mortgage under section 58(b). The statutory definition does not make absence of a payment date a condition.

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Option A

Section 58(e) describes an absolute transfer subject to retransfer on payment and a personal undertaking to repay on a certain date.

Option B

Section 58(c) turns on an ostensible sale with a qualifying condition in the instrument.

Option C

Section 58(b) combines retained possession, a personal covenant and a right to cause sale on default.

Option D

Section 58(d) turns on delivery or a promise of delivery of possession and appropriation of rents or profits.

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