Skip to main content

Difference between "conditional mortgage" and "sale with condition to repurchase".



Difference between "conditional mortgage" and "sale with condition to repurchase".

A conditional mortgage and a sale with condition to repurchase are two different types of transactions involving property. 

The main difference is that in a conditional mortgage, the original owner of the property remains the debtor and has the right to redeem the property by paying off the debt to the lender, who is the conditional buyer. In a sale with condition to repurchase, the original owner sells the property outright to the buyer and has no debt or right to redeem, but only an option to repurchase the property within a specified period by paying the agreed price to the buyer. 


A conditional mortgage is a form of mortgage by which the owner of the property transfers it to the lender as a security for the loan, but with a condition that the transfer will become absolute or void depending on whether the loan is repaid or not. A conditional mortgage must be evidenced by one document that contains the condition of redemption. A conditional mortgage is governed by Section 58 (c) of the Transfer of Property Act, 1882.


A sale with condition to repurchase is a form of sale by which the owner of the property sells it to the buyer, but with a condition that the buyer will reconvey the property to the seller if the seller pays the agreed price within a specified period. A sale with condition to repurchase may be evidenced by more than one document, such as a sale deed and a separate agreement of reconveyance. A sale with condition to repurchase is not a mortgage, as there is no debt or security involved. A sale with condition to repurchase is governed by the general principles of contract law.

Labels:

Comments

Post a Comment

Popular posts from this blog

Theories of Punishment

Theories of Punishment Punishment in law serves multiple purposes, and the rationale behind these punishments can be understood through different theories of punishment. These theories form the foundation for justifying punishment and help in shaping law s and sentencing policies. Here’s a detailed explanation of each theory with examples: 1. Deterrent Theory The deterrent theory focuses on preventing crime by imposing severe punishments to create fear among people. The idea is that potential offenders will refrain from committing crimes if they fear punishment. Example : The death penalty or long-term imprisonment for serious offenses like murder or terrorism acts as a deterrent for those considering committing such crimes. 2. Retributive Theory This theory is based on the principle of "an eye for an eye" or giving the offender what they deserve. It focuses on vengeance or moral satisfaction, ensuring the punishment is proportionate to the crime committed. The goal is not to...
Post a Comment
Read more

Companies act ,2013

Companies Act, 2013 Meaning and Nature of a Company with Emphasis on its Advantages 1. Meaning of a Company : A company is a legal entity formed by a group of individuals to engage in and operate a business commercial or industrial enterprise. It is governed by the provisions of the Companies Act, 2013 in India. According to Section 2(20) of the Companies Act, 2013, "Company means a company incorporated under this Act or under any previous company law." Lord Justice Lindley : "A company is an association of many persons who contribute money or money's worth to a common stock and employ it for a common purpose. The common stock so contributed is denoted in money and is the capital of the company." A company is an artificial person created by law. It has a separate legal identity distinct from its members. It can enter into contracts, own property, sue, and be sued in its own name. 2. Nature of a Company : The nature of a company can be understood through its key ...
Post a Comment
Read more

Musahar Sahu and Another v. Lala Hakim Lal and Another, 43 I.A. 151 (P.C. 1915). Section 53 - Fradulent transfer

Musahar Sahu and Another v. Lala Hakim Lal and Another, 43 I.A. 151 (P.C. 1915).  This citation indicates that the case was decided by the Privy Council (P.C.) in 1915, and reported in volume 43 of the Indian Appeals (I.A.), starting from page 151.  The case of Musahar Sahu and Another v. Lala Hakim Lal and Another was a dispute over the validity of two conveyances of land executed by a debtor, Kishun Benode, to his relatives, Kamta Prashad and Hakim Lal, on 2nd September 1901. The plaintiff, Musahar Sahu, was a creditor of Kishun Benode who had obtained a judgment against him on 5th December 1901. The plaintiff sought to set aside the conveyances on the ground that they were made with intent to defeat or delay his claim, under section 53 of the Transfer of Property Act, 1882. The courts gave different verdicts on the two conveyances. The first conveyance, in favour of Kamta Prashad, was set aside by the Subordinate Judge and the High Court, as it was found to be without consi...
Post a Comment
Read more