Transfer of Property Act Section 101 — No merger in case of subsequent encumbrance

CHAPTER IV OF MORTGAGES OF IMMOVEABLE PROPERTY AND CHARGES — Charges

General

Summary

A mortgagee, a person holding a charge on property, or anyone who takes rights from them, can buy or acquire the property owner’s rights without automatically merging their own mortgage or charge with any later mortgage or charge on the same property. This means the earlier mortgage or charge stays separate and does not disappear just because the person now also owns the property. A later mortgagee or charge-holder cannot foreclose or sell the property without first redeeming the earlier mortgage or charge, and must do so subject to that earlier interest.

Official Text

Any mortgagee of, or person having a charge upon, immoveable property, or any transferee from such mortgagee or charge-holder, may purchase or otherwise acquire the rights in the property of the mortgagor or owner, as the case may be, without thereby causing the mortgage or charge to be merged as between himself and any subsequent mortgagee of, or person having a subsequent charge upon, the same property; and no 1. Subs. by Act 20 of 1929, s. 48, for s. 95. Original s. 96 was rep. by Act 5 of 1908, s. 156 and Sch. V. 2. For the repealed provisions, as re-enacted, see (Act 5 of 1908), Sch. I, Order XXXIV, rules 12 and 13. 3. Subs. by Act 20 of 1929, s. 49, for certain words. 5. Subs. by Act 20 of 1929, s. 50, for certain words. 6. Added by s. 50, ibid. 7. Subs. by s. 51, ibid., for s. 101. such subsequent mortgagee or charge-holder shall be entitled to for close or sell such property without redeeming the prior mortgage or charge, or otherwise than subject thereto.]