Rights & Liabilities of

Mortgagee

Rights

Selling Rights: If borrower fails to return the loan in time then mortgagee has the right to sell the property of the mortgagor. But it will sold and getting decree from the court Property will be sold by auction.

Shortage of Money: After selling the property if amount is less than the loan, the balance can be recovered from the person by getting the decree from the court.

Rights

Usufructuary: Mortgagee has no right to sell the property and to obtain the decree from the court. The banker can retain the possession till the recovery of loan.

Refusal of Debt: If a borrower refuses to return the loan or he is unable to pay the debt then the lender can get a foreclosure decree from the court.

Rights

Adjustment of Payment: The banker has a right to distribute the payment received after sale of property according the principal amount, interest and other charges.

Joint Suit: If the mortgagor are more than one person then the suit will be filed against all of them if the loan is not returned.

Rights

Sale of Property:In case of private property the mortgagee will issue at least 3 months notice to the mortgagor before selling the property.

Liabilities

When the property is in the possession of the mortgagee then it has the following liabilities:

Property may not be damaged.No alteration is allowed in property.The property must be insured.Property must be kept secured.Rent of property must be collected.Govt. Revenue must be paid.Property must be kept clear from all dues.

Anamika Sharma