Transfer of Property Act Section 63 — Accession to mortgaged property
CHAPTER IV OF MORTGAGES OF IMMOVEABLE PROPERTY AND CHARGES — Rights and Liabilities of Mortgagor
General
Summary
If mortgaged property is in the mortgagee's possession and gains something extra (an "accession") during the mortgage period, the mortgagor gets that addition back when redeeming the property, unless there is a contract saying otherwise. If the mortgagee paid for the addition and it can be separated from the main property without harming it, the mortgagor must pay the mortgagee the cost of acquiring it to take it. If the addition cannot be separated, it must be returned with the property, and the mortgagor must pay the proper cost if the addition was necessary to prevent the property's destruction, forfeiture, or sale, or if the mortgagor agreed to it, with interest at the same rate as the principal or nine percent per annum if no rate is fixed. Any profits from such an addition are credited to the mortgagor, and for a usufructuary mortgage, profits from an addition paid for by the mortgagee are set off against any interest payable on that money, unless a contract says otherwise.
Official Text
Where mortgaged property in possession of the mortgagee has, during the continuance of the mortgage, received any accession, the mort -gagor, upon redemption, shall, in the absence of a contract to the contrary, be entitled as against the mortgagee to such accession. 1. Ins. by Act 20 of 1929, s. 22. 2. S. 60A and 60B ins. by s. 23, ibid. 3. Subs. by s. 24, ibid., for s. 61. 4. Ins. by s. 25, ibid. 5. Subs. by s. 25, ibid., for “the interest of the principal money”. 6. Subs. by s. 25, ibid., for “the principal money”. Accession acquired in virtue of transferred ownership.—Where such accession has been acquired at the expense of the mortgagee, and is capable of separate possession or enjoyment without detriment to the principal property, the mortgagor desiring to take the accession must pay to the mortgagee the expense of acquiring it. If such separate possession or enjoyment is not possible, the accession must be delivered with the property; the mortgagor being liable, in the case of an acquisition necessary to preserve the property from destruction, forfeiture or sale, or made with his assent, to pay the proper cost thereof, as an addition to the principal money, 1 [with interest at the same rate as is payable on the principal, or, where no such rate is fixed, at the rate of nine per cent. per annum]. In the case last mentioned the profits, if any, arising from the accession shall be credited to the mortgagor. Where the mortgage is usufructuary and the accession has been acquired at the expense of the mortgagee, the profits, if any, arising from the accession shall, in the absence of a contract to the contrary, be set off against interest, if any, payable on the money s o expended. 2 [