Consider the following statements regarding mortgages under the Transfer of Property Act, 1882: Statement 1: Under an English Mortgage, the mortgagor binds himself to repay the mortgage money on a certain date and transfers the mortgaged property absolutely to the mortgagee, subject to a proviso that it will be retransferred upon payment. Statement 2: A Mortgage by Conditional Sale is distinct from an English Mortgage because in the former, the sale is ostensibly complete from the beginning, whereas in an English Mortgage, the personal liability of the mortgagor is a mandatory requirement. Statement 3: A Usufructuary Mortgage allows the mortgagee to retain possession and receive rents/profits in lieu of interest or payment, but the mortgagee cannot sue for sale or foreclosure. Which of the following describes the accuracy of the statements provided?

Question

Accepted Answer

All three statements are correct and accurately reflect the types of mortgages defined under Section 58.

Answer

Statement 2 is incorrect because a Mortgage by Conditional Sale must be recorded in the same document as the sale deed.

Answer

Statement 1 is incorrect because an English Mortgage does not involve absolute transfer.

Answer

Statement 1 and Statement 3 are correct, but Statement 2 is incorrect.

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