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Under section 72 of the Transfer of Property Act, 1882, assume the expenditure is necessary, there is…

Section 72(b)–(d) of the Transfer of Property Act, 1882 permits the three stated purposes. In the absence of a contrary contract, necessary expenditure may be added to the…

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Under section 72 of the Transfer of Property Act, 1882, assume the expenditure is necessary, there is no contrary contract, and the mortgagor has failed to take proper and timely steps after being asked to preserve the property or support the title. For which purposes may a mortgagee spend money and add it to the principal with interest?

I. Preserve the property from destruction, forfeiture or sale.

II. Support the mortgagor's title.

III. Make the mortgagee's own title good against the mortgagor.

Select one answer
Answer and explanation

Correct answer D

Section 72(b)–(d) of the Transfer of Property Act, 1882 permits the three stated purposes. In the absence of a contrary contract, necessary expenditure may be added to the principal with interest. For preservation or supporting title, the proviso requires the mortgagor to have failed to take proper and timely steps after being called upon.

Option feedback

Option A

Section 72(d) also includes making the mortgagee's title good against the mortgagor.

Option B

Section 72(c) also includes supporting the mortgagor's title.

Option C

Section 72(b) also includes preserving the mortgaged property.

Option D

Section 72(b)–(d) includes all three purposes, subject to the statutory conditions stated in the question.

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