- Transfer of interest in an immovable property
- Purpose of transfer should be securing the payment of money
- Transferor is called mortgager and the transferee is called mortgagee
- Money advanced is called mortgage money
- Document of transfer is called mortgage deed
- Transfer of interest in an immovable property
The mortgager transfers his interest in the specific immovable property in the favour of the mortgagee. This means that the mortgage is not permitted to transfer the property in favour of any other person after the execution of the mortgage. The right of mortgagee takes priority over the subsequent rights created by the mortgager.
Purpose of transfer should be securing the payment of money
The transaction of the mortgage is to protect the interest of the creditor who has lent money to the borrower by way of a loan or to secure an existing or future debt.
