Chapter-1 Mortgage 2003 (1)

8/8/2019 Chapter-1 Mortgage 2003 (1)

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Chapter -1

1.1 Introduction

Human beings have multifarious needs, and borrowing money for satisfaction for these

needs is perhaps as old as civilization itself. Moneylenders wanting security for the

repayment of the loan gave birth to the system of hypothecation or mortgage of

property, movable or immovable. In the beginning, property kept as a security was

delivered to the one who advanced the loan, and it was forfeited in the event of the

nonpayment of loan despite its worth. This was also a universal practice that the value

of the property kept as a security for the repayment of the loan was much higher than

the amount raised, even if calculated with interest. Simple money lending or money

lending on the strength or security of immovable property has again been in existence

from time immemorial. However, here the possession continued with the mortgagor,

but the property was again forfeited in the event of non-payment of loan. In the absence

of clear rules, exorbitant interest rates and the condition favorable to the mortgagee yet

grossly adverse to the mortgagor, the whole transaction of mortgage was perceived as a

transaction, on an entirely different platform than other civil contracts, like sale andpurchase of property.

Thus the prevalent understanding of the mortgage deal was that it is a transaction,

where, a person who in need of money borrows it from another on the strength of some


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tangible property of value higher than the loan amount. He promises to repay the loan

within a specified time. In this manner, the economic needs of the borrower are met

with. The benefit coming to mortgagee in this transaction was that he was entitled to

charge an interest on the loan amount and would get back more than what he had lent.The transaction, in theory, therefore, was for to the mutual benefit of both the parties.

However, the inequality of the standing of both the parties was evident as almost in all

communities the general practice was that in the event of non-payment of loan amount

by the mortgagor, the ownership in the property passed to the mortgagee without him

having to pay anything extra. In certain communities, charging interest from the needy

was prohibited, therefore, the system of mortgage prevalent among those communities

could be compared to what is presently called a possessory mortgage or a usufructuary

mortgage. In this transaction, the possession of the property was delivered to the

mortgagee who was entitled to use it till the repayment of loan by the mortgagor. A

mortgage by conditional sale was also prevalent in Hindu and Muslim law while

English mortgage, to begin with, was limited to contracts involving Europeans and

inhabitants of the presidency towns. After the enactment of the act, systematic and

detailed rule were laid down to govern law relating to mortgages and to determine the

rights and liabilities of both the mortgagor and the mortgagee.

When two persons mutually transfer the ownership of one thing for the ownership of

another, neither thing or both things money only, the transaction is called an

exchange. It is a transaction by which each party acquires property in which he had

no interest before. For a valid exchange, there must be a physical delivery of the

property to the parties and each party to the exchange has the rights and is subject to

the liability of the seller as to that which he gives, and also has the rights and liabilitiesof a buyer as to that which he takes.


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1.2 Origin (A Historical perspective)

Mortgage-In ancient system, mortgage was a pledge, forfeited I default of payment.Expression mortgage is combination of two French words mort and gage which

meant pledge. Early form of mortgage amongst Hindus and Muslims took the form of

conditional conveyance. Muslims devised it to evade Quranic injunction against usury

and it was known as bye-bil-wafa (sale with promise). Usufruct was enjoyed in lieu of

interest and the property was forfeited in default of payment of debt. Among Hindus, in

Bengal, it was known as Khatkabala, in Madras Avadhi Vikrayam or Muddata Kriyam

and in Bombay, as Gahan Lahan. In Roman law, it was fiducia which was followed by

pignus, transferring possession without liability of forfeiture. The last stage was

hypotheca, a form of hypothecation without possession, giving power of sale to the

transferred. In the earliest form of Mohammedan law it was also known as rahn or

pledge with possession, which corresponded to Roman pignus, where the creditor took

profits in discharge of principal and interest, it was vivum or living pledge which

worked out its own redemption. When profits were taken merely in lieu of interest, it

was known as mortuum vadium or a dead pledge. It is similar to usufructuary mortgage

of the T.P. Act, 1882.

Later, English mortgage took the modern form of conditional conveyance according to

which the mortgagor was entitled to re-enter the land on repayment of the debt. It then

became akin to English mortgage, as incorporated in sub-sec. (e) of section 58 of the

T.P. Act, 1882. The equitable principles governing mortgages, after the common law

mortgage became mortgage by conditional conveyance, have been incorporated in theIndian law of mortgages, whereby on principles of equity, it has come to be recognized

that mortgage is in essence a borrowing transaction and that the borrower needed


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protection and not penalization and that forfeiture of property on non-payment on due

date amounted to penalizing him.

Exchange-An exchange involves a mutual transfer between two parties of their

respective properties. The main factor that distinguishes an exchange from a sale is that

in an exchange, no monetary consideration is involved. Exchange of one property for

money is a sale, and an exchange of movable property is barter. An exchange of one

stamp for another,1 or shares in a limited company, as consideration, is an exchange. In

an exchange the consideration must be specified, as if it not mentioned, the transaction

is not an exchange. If one of the items transferred is coupled with money, the

transaction is not an exchange but a sale. Thus, where properties are transferred and

one of the parties has to pay an additional sum of one lakh rupees as equalization value,

the transaction is not an exchange, but is a sale. A partition or a surrender of a lease in

exchange of lease of another property is not an exchange, but an exchange of equity of

redemption of one property for the mortgagees right of another or a transfer of rights

in the respective plots situated in two villages for convenience in cultivating is an

exchange, and the mere mention of sale consideration in the sale deed does not make it

a sale.2

1.3 Research Methodology

The present research study is mainly doctrinal and comparative. Keeping this in view

the researcher utilized the conventional method of using of library consisting of

primary sources like books, journals, e-journals, reports and it also deals with

secondary sources like surveys and data collections. As the study is comparative,

academic in nature, historical and doctrinal methods are adopted because it is not

1Kedar nath v emperor(1903) ILR 30 Cal 921.2Banwari lalv Assistant Director of Consolidation (1981) ALL LJ 1239.


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possible to study purely by experimental method. The relevant material is collected

from the secondary sources. Material and information are collected both legal. Political

and social sources like books on property laws by eminent author like Poonam Pradhan

Saxena etc. Material is also collected from print and electronic media likewww.google.com and www.wikipedia.com etc.

From the collected and information, researcher purposes to comparatively analysis the

topic of the study and would try to reach the core aspect of the topic.

1.4 Hypothesis

The researcher has made a presumption that mortgage and exchange are interrelated

but both are different to each other.

1.5 Aims and Object

1. To know relation and difference between mortgage and exchange,

2. To get information about laws relating to mortgage and exchange,

3. To deal with interpretation of transfer of property act in respect of mortgage and

exchange,

4. To know recent judicial trend in mortgage and exchange and,

5. To know how the transfer of interest effect mortgage and exchange.

1.6 Project Scheme
http://www.google.com/http://www.wikipedia.com/http://www.google.com/http://www.wikipedia.com/


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1. Firstly, it introduces mortgage and exchange, in which it deals with aim and

objectives, hypothesis and limitations.

2. Secondly, it deals with the legal aspect which shows the comparative study of

mortgage and exchange, its applications, implementations and interpretation

enacted according to transfer of property Act.

3. Thirdly, the project describes the various aspects of the transfer of property act in

regard to Mortgage and Exchange.

4. Finally, the project deals with conclusion and suggestions.


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Chapter-2

Laws Related to Mortgage and Exchange

2.1 Mortgage; the Transfer of Property Act, 1882

Section58 Mortgage, Mortgagor, Mortgagee, Mortgage-money and mortgage-

deed defined.-(a) A mortgage is the transfer of an interest in specific immovable property

for the purpose of securing the payment of money advanced or to be advanced by way of

loan, an existing or future debt, or the performance of an engagement which may give rise

to a pecuniary liability.

The transferor is called a mortgagor, the transferee a mortgagee; the principal money and

interest of which payment is secured for the time being are called the mortgage-money, and

the instrument (if any) by which the transfer is effected is called a mortgage-deed.

(b) Simple mortgage.- Where, without delivering possession of the mortgaged property, the

mortgagor binds himself personally to the pay the mortgage-money, and agrees, expressly

or impliedly, that, in the event of his failing to pay according to his contract, the mortgagee

shall have the right to cause the mortgaged property to be sold and the proceeds of sale to

be applied, so far as may be necessary, in payment of the mortgage-money, the transaction

is called a simple mortgage and mortgagee a simple mortgagee.

(c) Mortgage by conditional sale.- Where, the mortgagor ostensibly sells the mortgaged

property-on condition that on default of payment of the mortgage-money on a certain date

the sale shall become absolute, or on condition that on such payment being made the sale


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shall become void, or on condition that on such payment being made the buyer shall

transfer the property to the seller, the transaction is called a mortgage by conditional sale

and the mortgagee by conditional sale.

(d) Usufructuary mortgage.- Where, the mortgagor delivers possession of the mortgaged

property to the mortgagee, and authorize them to retain such possession until payment of

the mortgage-money, and to receive the rents and profits accruing from the property in lieu

of interest, or in payment of the mortgage-money, or partly in the lieu of interest or partly

in payment of the mortgage-money, the transaction is called an usufructuary mortgage and

the mortgagee an usufructuary mortgagee.

(e) English mortgage.- Where the mortgagor binds himself to repay the mortgage-moneyon a certain date, and transfer the mortgaged property absolutely to the mortgagee, but

subject to a proviso that he will re-transfer it to the mortgagor upon payment of the

mortgage-money as agreed, the transaction is called an English mortgage.

(f) Mortgage by deposit of title-deeds.- Where a person in any of the following towns,

namely, the town of Calcutta, Madras, Bombay, and in any other town which the [state

government concerned] may, by notification in the official gazette, specify in this behalf,

delivers to a creditor or his agent documents of title of immovable property, with intend to

create a security thereon, the transaction is called a mortgage by deposit of title-deeds.

(g) Anomalous mortgage.- A mortgage which is not a simple mortgage, a mortgage by

conditional sale, an usufructuary mortgage, an English mortgage or a mortgage by deposit

of title-deeds within the meaning of this section is called an anomalous mortgage.


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2.2 Exchange; the Transfer of Property Act, 1882

Section 118Exchange definedWhen two persons mutually transfer the ownership of

own thing for the ownership of another, neither thing or both things being money only, the

transaction is called an exchange.

Section 119 Right of party deprived of thing received in exchange.- If any party to an

exchange or any person claiming through or under such party is by reason of any defect in

the title of the other party deprived of the thing or any part of the thing received by him in

the exchange, then, unless a contrary intension appears from the terms of the exchange,

such other party is liable to him or any person claiming through or under him for loss

caused thereby, or at the option of the person deprived, for the return of the thing

transferred, if still in the possession of such other party of is legal representative or a

transferee from him without consideration.

Section 120 Rights and liabilities of parties- Each party has the rights and is subject to

the liabilities of a seller as to that which he gives, and has the rights and is subject to the

liabilities of a buyer as to that which he takes.

Section 121 Exchange of money- On an exchange of money, each party thereby warrants

the genuineness of the money given by him.


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Chapter-3

Mortgage and Exchange; A descriptive study

3.1 Mortgage

3.1.1Parties to a mortgage

Mortgagor- A person effecting the mortgage of his property is called a mortgage and theone is whose favor it is executed is called a mortgagee. A mortgagor must be a person

competent to contract and capable to transfer the property. A minor cannot affect a

mortgage,3 but a guardian of minor can affect a valid mortgage with the sanction of the

court.4 If several persons execute a mortgage and some of them are minors, the mortgage is

only partly invalid. It remains valid and operative for those competent to execute it.5If the

karta of a hindu joint family executes a mortgage of the joint family property without the

consent of the other coparceners, again the mortgage is voidable at the option of the other

coparceners. If the mortgage is for a legal necessity, it is not necessary for the mortgagee to

3 Mohiree bibi v dharmodas ghose (1903) ILR 30 Cal 5394 Sinaya v munisami (1899) ILR 22 Mad 289.5 Keka v sirajuddin AIR 618, (1951) ALL LJ 436


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see the application of his money and all that he needs to show to the court is that he made

reasonable inquiries and acted honestly. A partner of a commercial firm a pardanashin

woman,6one of several co-owners can effect a valid mortgage. In case of joint tenants,

mortgage by one severs the tenancy and in case of more than one mortgage their share eachis liable jointly and severally.7

Mortgagee- Any person who is competent to hold property can be a mortgagee irrespective

of his competency to contract. It is competency to hold the property and not competency to

contract which is material here, and therefore even a minor is competent to mortgagee.

However, as the court is not a person, it is not competent to be a mortgagee.8

Transfer of an interest- in a mortgage there is, necessarily, a transfer of an interest in theproperty for a specific purpose. For instance, A borrows money from B and undertakes to

repay it within a period of one year. The agreement also provides that if A is not able to

arrange money, he would sell his property and repay the loan out of the sale proceeds. This

is not a transaction of mortgage, as no interest has been transferred in favor of the

mortgagee. What that interest is, would depend upon the nature and type of mortgage

which is affected. For example, in a simple mortgage, the transferor transfers a right to

cause the property to be sold. In usufructuary of possessory mortgage, the right to possess

and enjoy the property is transferred. Likewise, in an English mortgage, what is transferred

is the ownership while the mortgagor retains a right of redemption; or a right to get his

property back.

3.1.2 Purpose of mortgage

Securing a debt- Every mortgage presupposes the existence of a debt, actual or

contigent, and it is for the purpose of securing the repayment of the debt that a

mortgage of property is made. Tight in property is accessory to the right to recover

6 Hemchandra ray v suradhani AIR 1940 PC 1347 Dhanki v chandubha AIR 1969 SC 7598 Mehdi v chunni lalAIR 1929 ALL 834


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the debt. Hence, a transfer of property made for the purpose of discharging the debt,

or a mere covenant not to alienate the property till the debt is discharged unless

coupled with words expressly making property as a security for debt9 or a sale with a

condition of re-transfer, is not a mortgage. After affecting a mortgage, the sameproperty can again be mortgaged to raise an additional loan either to the same

mortgagee or a different one. But raising additional debt and introducing a co-

mortgagee does not alter the relationship of the first mortgagee with the mortgagor.

Money advanced or to be advanced- The primary purpose of the mortgage is to

ensure the repayment of money advanced or to be advanced. The clause money

advanced or to be advanced shows that the loan amount might be paid to the

mortgagor at the time of the execution of the mortgagor deed or even subsequent

thereto. The date of execution of the mortgage is effective even if the mortgage

money is undertaken to be advanced in future. But if no consideration, the mortgage

is void.

Mortgage money-The primary purpose of the mortgage is to raise a loan and

therefore, if there is no consideration the mortgage is a nullity, 10 but it does not fail

merely because the mortgagor fails to advance the money. Where part of the money

is advanced it is a good security for the part advanced. 11 It is sufficient if the

mortgagor leaves the money in a bank deposit at mortgagors disposal.

Mortgage money includes the interest accrued on it and the mortgagee is entitled to treat

the interest due under the mortgage as a charge on the estate, unless there is a contract to

the contrary.12 It also includes costs properly incurred by the mortgagee.

9 Satya Prasadv bhowani (1899) 2 ALL 48110 Ramasami v sundara (23 IC 80511 Raja thirumalvpandla muthial(1912) ILR 35 Mad 11412 Nammalwarchetty v krishnaswamy AIR 1923 Mad 21


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3.1.3 Agreement for mortgage

An agreement for mortgage gives rise to only a personal obligation that is short of

mortgage, or even a charge. It cannot be specifically enforced unless the lender has

advanced the money. The remedy in cases of breach is a claim of damages calculated in

terms of interest the money is likely to fetch, and the expenses incurred. Where the

mortgagor has executed the mortgage but has not been paid the mortgage money, he cannot

sue to get the balance paid unless in case of usufructuary mortgage and can sue only for

damages or redemption but if part of the mortgage money has been paid, the mortgage will

be valid to the extent of the amount paid.13

3.1.4 Right of redemption and right of foreclosure of the mortgage

In the transaction of a mortgage, the mortgagor keeps his property as a security with the

mortgagee, by transfer of an interest in it in his favor. So the interest or right of the

mortgagee is to cause the property to be sold in the event of non-payment of the loan. The

duty of the mortgagor is to repay the loan by the specified time, and his right is to get back

or reclaim whatever he has transferred in favor of the mortgagee. This right of the

mortgagor to get back, what all he had transferred in favor of the mortgagee after the

payment of the loan is called a right of redemption. This is presently a statutory right,

unlike the right in equity under English law. Redemption literally means release or

liberation, and repaying the loan the property of the mortgagor is released or liberated from

the mortgage.

On the other hand it is the duty of the mortgagor to deliver all the papers and the property if

it is in his possession, back to the mortgagor, when he receives the mortgage money.

However, if the mortgagor fails to repay the loan amount within the specified time, the

right arising in favor of the mortgagee is called a right of foreclosure. It must be understood

that the old rule enabling the mortgagee to forfeit the property in the event of non-payment

13 Rashik lalv ram narain (1912) ILR 34 ALL 273


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of loan is not a good law any more. He can cause the property to be sold, which means that

he can neither appropriate the property himself, nor can sell it himself, and must approach

the court for its sale. The right of the mortgagee to approach the court with a prayer for sale

of the mortgage property in the event of non-payment of loan is in the shape of suit forforeclosure of the mortgage. This right arises in favor of the mortgagee only after the

expiry of the time period mentioned in the mortgage deed for its payment.

3.2 Exchanges

A transfer of property in completion of an exchange can be made only in manner provided

for the transfer of such property by sale. For example, if As house worth Rs. 2000 is to be

exchanged for Bs field worth Rs. 1200 and in pursuance of this bargain, B agrees to pay to

A Rs. 800 in cash, the transaction is not a sale but an exchange.

Similarly, where the government of India, as owners of the G.I.P Rly., exchanged lands

valued at 89 lacks of rupees for lands belonging to the Bombay Port Trust valued at 86

lacks of rupees and rupees 3 lacks paid in cash by the Port Trust, it was held that the

transaction was an exchange and not a sale, having regard to the relative value of the lands

and the money paid for equality of exchange. Thus, there may be a exchange of Xs pen for

Ys book, or of Xs house for the house of Y. But according to the definition, there cannot

be an exchange of a table for Rs. 100 or of a house for Rs. 5000. These are sales because

one of the items transferred is money, and they will be governed by the principles

applicable to sale. If the sale is of immovable property, the provisions of section 54 to 57

will apply. If, on the other hand, the sale is of movable property, the provisions of the Sale

of Goods Act, 1930, will apply


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3.2.1 Essentials of an Exchange

1. There must be a minimum of two parties and two properties, one each belonging to

each of them;

2. There have to be a mutual transfer of these properties- i.e., A transferring his

property to B, and B in turn transferring his property to A;

3. Property can be exchanged with either movable or immovable property;

4. No other consideration should be involved besides these properties.

3.2.2 Mutual exchange

The term mutually signifies that the parties must be same, and two things are exchanged.

For instance, A transfers his property to B and B transfers his own property in exchange to

A. if the transfer is only from the side of one of the parties, it is not an exchange. Thus a

transfer by a husband to a wife in discharge of her claim to maintenance is not an

exchange, as the wife does not transfer ownership in anything. Similarly, a document

whereby one decree is set off against another and the balance made up by a transfer of land

is not an exchange, for there is no mutual transfer of two things.14

3.2.3 Object of Exchange must be lawful

14 Dina nath v matimala (1906) 11 Cal WN 342.


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The object of exchange must not be unlawful. Exchange is primarily a contract, and if the

object or aims at defeating the provisions of law, it would be invalid. In shrihari jena v

khetramohan jaina,15 a deed of exchange was executed to compromise criminal

proceedings between the parties. The agreement between them stated, that till the proceedings are compromised, the deed of exchange could not be taken from the

Registrars office. The court held that in view of s 23 of The Indian Contract Act, 1872, the

exchange was invalid.

3.2.4 Mode of transfer

Transfers of property by way of an exchange can be made only in manner provided for the

transfer of such property by sale. Thus, in case of immovable property the rules as toregistration or delivery of possession apply, therefore, an exchange of tangible immovable

property of the value of Rs. 100 and upward, if not made by a registered instrument, is

invalid. An exchange can be made by mutual conveyances, through two separate deeds are

not necessary. This rule does not apply in Punjab, and therefore an exchange of property in

Punjab can take place and validly completed even orally.16

3.2.5 Right of party deprived of thing received in exchange

An exchange, like a sale, is primarily a contract between two parties; and unless the object

of exchange in unlawful, the terms of the contract would be applicable to both of them. The

rule enunciated in s119 is also subject to a contract of contrary. According to this section,

each party is entitled to the property that he was entitled to under the contract and provides

a remedy to the aggrieved party in case, he does not get what he was supposed to get under

this contract. For instance, A and B enter into a contract to mutually exchange their

properties X and Y, respectively. A delivers X to B, but B fails to deliver Y to A. As rights

15 AIR 2002 Ori 195.16 Kishori lalv babu ram (2003) 1 RCR (civil) 807 (P&H)


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would be decided in accordance with the rules laid down under this section. It provides two

remedies to the party so dispossessed in the alternative;

1. He can claim compensation for the loss caused to him by such dispossession.

2. He can take back the property he had transferred. This right can be exercised as

against;

(a) The other party to the exchange having its possession;

(b) If the possession is with the legal representative of the transferee;

(c) If the possession is with the gratuitous transferee of the other party.

Where a person does not get the possession of the property that he is entitled to receive in

exchange, he is entitled to return of the property transferred by him. Thus, where a party to

an agreement for exchange of property loses possession of the property received in

exchange due to defect in title of the other party, the former is entitled to retain possession

of the property he gives in exchange if he happens to be in possession thereof.17

The principle of getting the property in return in case of deprival of the exchanged

property, also applies to cases where instead of a subsequent deprivation of the property

transferred there is no transfer at all. When a party to exchange fails to obtain possession of

the property which he is entitled to receive in exchange, then also, he is entitled at his

option for the return of the property transferred by him. Where a person is evicted from a

portion of the land, he can recover the whole of the land that he gives, but cannot retain the

portion from which he has not been evicted.18 However if the exchange is complete and

then one party is dispossessed by a trespasser, he cannot seek the return of his property

given to the other party under an exchange.19

17 Hari shanker Mishra v Vice Chairman, Kanpur Development Authority AIR 2001 ALL 13918 Verra pillai v ponnambala pillai (1899) 9 Mad LJ 13719 T Bhaskara Rao v tangella Mudi GabrielAIR 2004 AP 106.


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3.2.6 Rights and liabilities of parties

In an exchange, each party is subject to the right of the buyer and seller in relation to the

property that he receives and gives respectively. A right of pre-emption which arises out of

a sale does not necessarily arise out of an exchange, but a rue of estoppel applies in case of

an exchange. Thus, where a person having only half the property purports to give whole of

it to another in exchange, and subsequently purchases the other half, the transferee is

entitled to the other half also, as soon as the title becomes perfect. There is no charge for an

unpaid or paid price in an exchange on the land given for the value of the land agreed to be

taken.

3.2.7 Exchange of money

Money can be exchanged with money, of the same or different denomination or even

different currencies. The term money here includes not only coins, but also currency

notes.20

Chapter 4

20 Re Mathur lalbhai (1901) ILR 25 Bom 702.


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Conclusion

At its most basic, amortgage is a loan used to purchase a house, There are two primary

types of mortgages:fixed rate and variable rate. A fixed-rate mortgage is a loan that

charges a set rate of interest that typically does not change throughout the life of the loan.

Fixed-rate mortgages enable buyers to spread out the cost of paying for an expensive

purchase by making smaller, predictable payments over a long period of time.A variable-

rate mortgage, also commonly referred to as an adjustable-rate mortgage or a floating-rate

mortgage, is a loan where therate of interest can change over time. When such a change

occurs, the monthly payment is "adjusted" to reflect the new interest rate. Over longperiods of time, interest rates generally increase. An increase in interest rates will cause the

monthly payment on a variable-rate mortgage to move higher. Variable-rate mortgages

have lower initial interest rates than fixed-rate mortgages, resulting in lower monthly

mortgage payments, enabling buyers to afford more expensive homes than they would be

able to purchase with a fixed-rate mortgage. Fixed-rate mortgages are significantly more

complex than their fixed-rate counterparts, and homebuyers may experience sudden and

potentially significant increases in monthly mortgage payments if interest rates rise. A

monthly mortgage payment consists of a series of underlying components that

includeprincipal, interest, taxes and insurance. In addition to the money required to cover

the mortgage, obtaining a mortgage often requires a substantial amount of money to cover

the down payment and closing costs. The amortization schedule is one of the most

important, yet overlooked, documents involved in the mortgage process. This schedule

shows the true cost of purchasing a home, including the amount of interest paid. Being

eligible for a loan and being able to afford the property aren't necessarily the same.

Regardless of the size of a loan a lender offers, don't buy more house than you can afford.

A solid credit rating and a mortgagepre-approval will both be beneficial when you are

shopping for a home. Pre-approval show buyers that you are able to make the purchase.
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There are many types of loan and many potential lenders. When shopping for a loan, take

your time and search for the best deal. Shopping for a new home is exciting. It is also a

little bit complicated. There's a lot to think about and plenty of opportunities to spend more

than you should. Like all major financial decisions, home shopping should not be adecision made in haste. A careful look at your finances, a thorough review of the amount

you wish to spend, and some consideration of the type of loan that you will comfortable

with should all be part of your pre-planning process. With just a little bit of careful

planning and some patience, your search for the home of your dreams can be a rewarding

and financially responsible experience that gives you a great place to live without breaking

the bank.

It may be noted that an exchange also includes a barter of goods or movable property. The

provision will, therefore apply to exchanges both of movable and immovable property. The

essential condition of every transaction in the nature of an exchange is that it must be a

transfer of a thing for another thing, and both or either of these things may be movable or

immovable. It must, however, be observed that the definition does not exclude the

payment of money altogether. What it says is that of a thing for money only can amount to

an exchange. It follows, therefore, that if one of the two properties which are to be

exchanged exceeds the other in value, the transaction would nonetheless be an exchange,

even if some money is paid by the owner of the property in addition, in order to equalise

the value of both properties.

Documents

Chapter-1 Mortgage 2003 (1)