Charge and mortgage

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anshul jain

anshul jain (Querist)
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09 October 2013 what is the difference between charge and mortgage ?

SAMADHAN SHRIRAM

SAMADHAN SHRIRAM (Expert)
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09 October 2013 Mortgage is a conveyance of property, subject to a right of redemption whereas a charge only gives a right to payment out of a particular immovable property without transfering it

CA Pallav Singhania

CA Pallav Singhania (Expert)
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09 October 2013 A mortgage is a contract between the lender and the borrower that allows an individual to borrow money from a lender for the purchase of housing.

The possession of the property remains with the borrowers (as they will usually reside in their home).

A “mortgage” is a conveyance of property, subject to a right of redemption,
whereas a charge only gives a right to payment out of a particular immovable property without transferring it.

A “mortgage” can be enforced against a bonafide purchaser for value whether with or without notice but a charge cannot..

regards,

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