Mortgage
A complete guide to what "Mortgage" means in real estate and how it applies to property transactions in India.
Definition
A mortgage is a legal agreement in which a property owner pledges their property as security for a loan. The lender holds a lien on the property until the loan is fully repaid. If the borrower defaults, the lender can foreclose on the property to recover the outstanding amount.
Use of Mortgage in Real Estate
In India, mortgages are governed by the Transfer of Property Act, 1882, which defines six types of mortgages including simple mortgage, mortgage by conditional sale, and equitable mortgage (deposit of title deeds). Home loans are the most common form of mortgage, where banks retain the original title documents until the loan is repaid. After repayment, the borrower must obtain a release letter and have the mortgage lien removed from the property records.
Key Takeaway
Understanding "Mortgage" is essential for making informed real estate decisions. Always consult a qualified professional for advice specific to your situation.
Disclaimer: This glossary is for educational purposes only and does not constitute legal or financial advice. Definitions may not reflect the most current regulatory changes. Please consult a qualified professional for guidance specific to your transaction.