Rights and liabilities of mortgagor and mortgagee
Answers
Answer:
mortgagor is an individual or a business entity providing a mortgage or security lien to real estate in exchange for the lender providing funds to the mortgagor. A mortgagee is a lender who provides money to the owner of real estate and who takes security or a lien in real estate as assurance for repayment of the loan. Often, the mortgagor is referred to as the borrower while the lender is referred to as the mortgagee.
A mortgage is a lien against real estate in exchange for the repayment of money. A mortgage may be for a loan used to purchase the real estate, or for money loaned after the real estate is purchased. In either case, the real estate is used as security for the money lent, or mortgage loan, and the mortgage is the security agreement. Mortgages are public documents and are recorded. A mortgage is the loan used to secure ownership of a property.
Example: The Bank loans Rs200, 000 to Mr Singh for the purchase of a home. Mr Singh is referred to as the mortgagor in the transaction, and the Bank is referred to as the mortgagee.
Explanation:
Rights of Mortgagor. Every mortgage-deed leaves a right to the mortgagor and a corresponding liability for mortgagee and vice versa. Following are the rights given to a mortgagor given by the Transfer of Property Act, 1882 . Right to transfer mortgaged property to a third party instead of retransferring.