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Transfer of Property Act, 1882 Where, without delivering possession of the mortgaged property, the…

Section 58(b) defines a simple mortgage by the mortgagor’s personal repayment obligation without delivery of possession and the mortgagee’s right to cause a sale on default,…

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Transfer of Property Act, 1882

Where, without delivering possession of the mortgaged property, the mortgagor binds himself personally to pay the mortgage-money, and agrees that, in the event of his failing to pay according to his contract, the mortgagee shall have a right to cause the mortgaged property to be sold and the proceeds of sale to be applied in payment of the mortgage-money, the transaction is called:

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Section 58(b) defines a simple mortgage by the mortgagor’s personal repayment obligation without delivery of possession and the mortgagee’s right to cause a sale on default, applying the proceeds to the debt. Those are the stated features. Possession transfer characterizes a usufructuary mortgage; conditional sale and an absolute transfer with a reconveyance condition concern different categories.

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