Have You Mortgaged Your House? Know Your Rights

Have You Mortgaged Your House? Know Your Rights

Have You Mortgaged Your House? Know Your Rights

We all know what mortgage means. In real estate parlance, it is an agreement between a lender and a borrower. While the borrower is known as the mortgagor who pledges his home to take up loan, the lender is known as mortgagee. In the event of a mortgagor failing to return the money within the agreed terms and conditions, it's the legal right of the mortgagee to claim the property to recover the amount due. But, do you know there are legal rights that a mortgagor enjoys after paying up the mortgage money?

Deed and possession

A majority of the mortgagors are not aware of their legal rights, which are laid down in the Transfer of Property Act. After the mortgage agreement is over, the mortgagee should hand over the mortgage deed and related documents to the mortgagor.

In case, he is using the property, he has to vacate the premises.  During the mortgage period when the title deed and other important documents is in the possession of the mortgagor, he can at times inspect and take copies in full or extract of the title deed.


After all conditions are met by the mortgagor with the mortgagee at the time of the mortgage and not otherwise, redemption can take place. For instance, a person can't claim for redemption of the share of the mortgaged property upon settlement of an amount in proportion to the full amount due on the mortgaged property.

Property transfer

Once the money taken has been returned to the mortgagee, the mortgagor reserves the right to redeem his mortgaged property. The lender is legally bound to return/re-transfer all the property to the mortgagor. Moreover, the transfer of property is complete after the lender gives in writing that he holds no legal right in the property.

If the lender fails to comply with the property transfer rules, the mortgagor can file a suit of redemption and move to court to legally enforce the issue.

In case the mortgagor has mortgaged two or more properties with the same lender, when the mortgage amounts of any two or more such mortgages mature, the borrower is free to redeem any one of such property separately.

Gains from property

In case a mortgage property is on lease or the mortgagee obtains a lease during the mortgage tenure, the borrower upon redemption will be entitle to enjoy the benefits of the new lease.  By same token, if the mortgagee received any accession to the mortgaged property in possession, the mortgagor will receive the benefits upon redemption.

If the mortgagee has renewed the living conditions of the mortgaged property during the mortgage tenure, the mortgagor is not liable to pay the costs.

Last Updated: Sat Jul 30 2016

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