Know Your Rights for Mortgages and Financing a Home

Know Your Rights for Mortgages and Financing a Home

Know Your Rights for Mortgages and Financing a Home : Before getting into the rights of mortgage, we should be familiar with some peculiar terms related to the mortgage, such as:

1- Mortgagor – A mortgagor is a person who has transferred the immovable property in exchange for money.

2- Mortgagee – The mortgagee is the person who lends the money and gets the interest associated with the principal amount from the mortgagor.

3- Mortgage money The principal amount taken as a loan from the mortgagee and the total amount along with some interest charges that the mortgagor gives back called mortgage money.

4- Mortgage deed – It is one type of agreement which binds both the mortgagor and the mortgagee in the legal terms and conditions.

Rights of Mortgagor

In the mortgage process, the mortgagor has certain rights and liabilities based on whether his loans are secured or not. The mortgage rights  defined in section 58 of the Transfer of Property Act 1882.

Let’s have a look into the rights of the mortgage or mortgagor specifically:

1. Right to Redemption – This right helps the mortgagor redeem his property once he pays off his debt to the mortgagee. This right ends the mortgage after the mortgagor clears his dues.

2. The right to transfer the mortgaged property to the third person instead of retransferring included in the Amendment Act of 1929. It is a type of right. Where the mortgagor has the right direction in transferring immovable property to a third party of his choice. This right’s main advantage is allowing the mortgagor to take a loan from that third party based on the same security.

3. Right to inspect and produce the documents – This right allows the mortgager to ask the mortgagee to produce copies of the documents related to the mortgaged property.

4. Right to Accession – This right enables the mortgagor to access or add something to his property under the mortgagee’s authority.

5. Right to improvements – If the mortgaged property has improved during the period of possession of the mortgagee. Then the mortgager has the right to redeem his possession or is not liable to pay for the improvements if there is no contract against it.

6. Right to the renewed lease – This is the right of the mortgagor that enables him to redeem the leasehold property with the benefit of the new lease only when the lease gets renewed during the duration of the mortgage.

Rights of the mortgagee

The rights of the mortgagee include the following:

1. Right to foreclosure – This right enables the mortgagee to sell the mortgager’s property if he fails to pay the mortgage before time, based on the decree set by the court.

2. Right to sue – If the mortgaged property is damaged or the mortgagor is personally bound to pay the debt. Then the mortgagee has the right to sue the mortgagor.

3. Right to sell – This right allows the mortgagee to sell the property if the mortgagor fails to pay the debt on time to recover the mortgage money. Here, court involvement not required.


Though the mortgage sounds simple, it has many rights which lie in the benefit of both the mortgagor and the mortgagee. The described rights are all included in the Transfer of Property act in 1882. And some rights were also included in the amendment Act in 1929.

But still, there are few rights which have not  included recently in any Act,and as a result. There are various cases of fraudulent transactions to deceive people in the mortgage.



Shivam Sharma

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