Types of Mortgage Under Section 58 of the Transfer of Property Act (2026)
The six kinds of mortgage defined in Section 58 of the Transfer of Property Act, 1882, how each one works, who keeps possession, and how the lender recovers. Last verified October 2026.
Explainer · Property Law · Transfer of Property Act
Section 58 of the Transfer of Property Act, 1882 defines a mortgage and sets out six kinds: simple mortgage, mortgage by conditional sale, usufructuary mortgage, English mortgage, mortgage by deposit of title deeds, and anomalous mortgage. They differ in who keeps possession, how the security works, and how the lender recovers if the borrower defaults. This explainer explains each type in plain terms, so you can tell them apart. Last verified October 2026.
- What it is: Section 58 of the Transfer of Property Act, 1882 defines a mortgage and lists six kinds.
- The six types: simple, by conditional sale, usufructuary, English, by deposit of title deeds (equitable), and anomalous.
- Possession differs: the mortgagor keeps possession in a simple mortgage; the mortgagee takes it in a usufructuary mortgage.
- Registration: most mortgages need a registered deed, but a mortgage by deposit of title deeds can be created without one in notified towns.
01Why the type of mortgage matters
People use the word "mortgage" loosely, but the type decides real things: whether the lender takes possession, whether the property can be sold on default without going to court, whether registration is needed, and which remedy the lender must use to recover the money.
Get the type wrong and you can pick the wrong remedy, miss a registration requirement, or misjudge the security. Section 58 removes the guesswork by naming and defining six specific kinds. Knowing which one you are dealing with is the first step in any mortgage dispute.
02What a mortgage is
Section 58(a) defines a mortgage as the transfer of an interest in specific immovable property to secure the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement that may give rise to a pecuniary liability. The transferor is the mortgagor, the transferee is the mortgagee, the principal money and interest are the mortgage-money, and the instrument is the mortgage-deed.
The key idea is security. The mortgagor does not sell the property outright. He transfers a limited interest so the lender has a hold on it until the debt is repaid. On repayment, the mortgagor is entitled to get his interest back, which is the right of redemption.
Mortgage versus charge
A mortgage transfers an interest in the property as security. A charge only creates a right to payment out of the property, without transferring an interest. Section 58 deals with mortgages.
03The six types explained
- Simple mortgage (58(b)): the mortgagor keeps possession and binds himself personally to repay. He agrees that if he fails, the mortgagee may have the property sold through the court and the proceeds applied to the debt. There is no transfer of possession.
- Mortgage by conditional sale (58(c)): the mortgagor ostensibly sells the property on condition that the sale becomes absolute on default, or becomes void on repayment, with the property to be re-transferred. The condition must be in the same document. It looks like a sale but is really a security.
- Usufructuary mortgage (58(d)): the mortgagor delivers possession to the mortgagee, who takes the rents and profits in place of interest, or towards principal and interest, until the debt is paid. There is usually no personal liability to repay and no power of sale.
- English mortgage (58(e)): the mortgagor binds himself to repay on a certain date and transfers the property absolutely to the mortgagee, subject to a proviso that the mortgagee will re-transfer it on repayment.
- Mortgage by deposit of title deeds (58(f)): also called an equitable mortgage, it is created by delivering documents of title to the lender, with intent to create a security, in certain notified towns. No registered deed is needed if there is no separate written contract, which is why banks use it widely.
- Anomalous mortgage (58(g)): any mortgage that is not one of the above. It is a combination or a variant, and its terms are governed by the contract between the parties.
04Comparison at a glance
| Type | Possession | Personal liability to repay | Usual recovery on default |
|---|---|---|---|
| Simple | Stays with mortgagor | Yes | Sale through the court |
| Conditional sale | Stays with mortgagor | No (typically) | Foreclosure |
| Usufructuary | Goes to mortgagee | No (typically) | Retention of rents and profits |
| English | May go to mortgagee | Yes | Sale |
| Deposit of title deeds | Stays with mortgagor | As agreed | Sale (like a simple mortgage) |
| Anomalous | As agreed | As agreed | As agreed by contract |
The exact remedy also depends on the terms of the deed and the relevant provisions of the Act on sale, foreclosure and redemption.
05Registration and recovery
Most mortgages of immovable property must be made by a registered instrument. A key exception is the mortgage by deposit of title deeds, which can be created without a registered deed by simply delivering the title documents with the intent to secure the debt, in the notified towns. This is why banks favour it for housing and business loans. For which documents must be registered, see which documents must be registered.
Recovery depends on the type. A simple mortgagee sues for sale. A mortgagee by conditional sale seeks foreclosure, which bars the mortgagor’s right to redeem. A usufructuary mortgagee simply keeps the rents and profits until paid. Banks and financial institutions often use special recovery routes under laws such as the SARFAESI Act in addition to the general law, which is a separate subject.
06Where Claw fits
Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.
Whether a deed is a mortgage by conditional sale or an outright sale, and which remedy of sale, foreclosure or redemption applies, is decided case by case, so it helps to read how courts have classified similar deeds. Claw lets you search more than 30 crore judgments in under five seconds, with Supreme Court rulings from 1950 and High Court rulings from 1990, so you can find how a particular kind of mortgage under Section 58 has been read, and follow a redemption or foreclosure suit, its orders and hearings, across 9,102 courts, benches and forums. Claw does not use customer case documents to train its AI models.
Create a free Claw account to compare how courts have classified mortgage deeds and to watch your own suit. To search the wider body of law, see case search across Indian courts.
07Sources and further reading
- India Code (official text of the Transfer of Property Act, 1882): indiacode.nic.in
- Section 58, TPA (bare text): devgan.in
- Transfer of Property Act (bare act and notes): advocatekhoj.com
- Claw: clawlaw.in
This explainer is general information, not legal advice. The law changes through amendments and judgments, so check the current text and take advice from counsel before you act.
08Frequently asked questions
How many types of mortgage are there under Section 58?
Six. Section 58 of the Transfer of Property Act, 1882 defines a simple mortgage, a mortgage by conditional sale, a usufructuary mortgage, an English mortgage, a mortgage by deposit of title deeds (equitable mortgage), and an anomalous mortgage.
What is an equitable mortgage?
It is the mortgage by deposit of title deeds under Section 58(f). It is created by delivering documents of title to the lender, with intent to secure a debt, in notified towns. It does not need a registered deed where there is no separate written contract, which is why banks use it widely.
Who keeps possession in a simple mortgage?
The mortgagor keeps possession. He binds himself personally to repay and agrees that, on default, the mortgagee may have the property sold through the court to recover the mortgage-money. Possession is not transferred.
What is the difference between a mortgage and a charge?
A mortgage transfers an interest in specific immovable property as security. A charge only creates a right to payment out of the property, without transferring an interest in it. Section 58 governs mortgages.
How does a lender recover under a usufructuary mortgage?
The mortgagee takes possession and keeps the rents and profits of the property in place of interest, or towards principal and interest, until the debt is paid off. There is usually no power of sale and no personal liability to repay.
Can I track a mortgage or foreclosure suit in Claw?
Yes. Claw lets you follow cases, orders and hearings across 9,102 courts, benches and forums, and search more than 30 crore judgments in under five seconds to see how courts have classified a given mortgage or decided a foreclosure. It supports the tracking and research, and does not give legal advice.