Which section of the Transfer of Property Act, 1882 sets out the duties of a mortgagee who takes…

Section 76 requires a mortgagee in possession to manage the property prudently and use best endeavours to collect rents and profits.

Choose your answer

Which section of the Transfer of Property Act, 1882 sets out the duties of a mortgagee who takes possession of the mortgaged property?

Answer and explanation

Correct answer D

Section 76 requires a mortgagee in possession to manage the property prudently and use best endeavours to collect rents and profits.

Option A

Section 77 concerns agreed receipts in lieu of interest and has a limited effect on some duties.

Option B

Section 78 concerns postponement of a prior mortgagee in favour of a subsequent mortgagee.

Option C

Section 79 addresses priority for a mortgage securing an uncertain amount where the maximum is expressed.

Option D

Section 76 sets out the obligations of a mortgagee who takes possession.