Transfer of Property Act Section 60A — Obligation to transfer to third party instead of re-transference to mortgagor

CHAPTER IV OF MORTGAGES OF IMMOVEABLE PROPERTY AND CHARGES — Rights and Liabilities of Mortgagor

General

Summary

If you have the right to redeem your mortgaged property, you can ask the mortgagee to transfer the property and the mortgage debt to someone else you name, instead of transferring it back to you. The mortgagee is required to follow this instruction. This right also belongs to any person with a charge or claim on the property, even if there are other charges in between, but if multiple people make this request, the one with the earlier or stronger claim takes priority. This rule does not apply if the mortgagee is currently in possession of the property or has been in possession at any time.

Official Text

(1) Where a mortgagor is entitled to redemption, then, on the fulfilment of any conditions on the fulfilment of which he would be entitled to require a re-transfer, he may require the mortgagee, instead of re-transferring the property, to assign the mortgage-debt and transfer the mortgaged property to such third person as the mortgagor may direct; and the mortgagee shall be bound to assign and transfer accordingly.

(2) The rights conferred by this section belong to and may be enforced by the mortgagor or by any encumbrancer notwithstanding an intermediate encumbrance; but the requisition of any encumbrancer shall prevail over a requisition of the mortgagor and, as between encumbrancers, the requisition of a prior encumbrancer shall prevail over that of a subsequent encumbrancer.

(3) The provisions of this section do not apply in the case of a mortgagee who is or has been in possession.