Transfer of Property Act Section 70 — Accession to mortgaged property

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

General

Summary

If property that has been mortgaged gains something extra after the mortgage is made, the mortgagee automatically gets the benefit of that addition as part of the security, unless the mortgage contract says otherwise. For example, if mortgaged land grows because a river deposits new soil on it, or if a house is built on mortgaged land, the mortgagee’s security covers that added value too.

Official Text

If, after the date of a mortgage, any accession is made to the mortgaged property, the mortgagee, in the absence of a contract to the contrary, shall, for the purposes of the security, be entitled to such accession. Illustrations

(a) A mortgages to B a certain field bordering on a river. The field is increased by alluvion. For the purposes of his security, B is entitled to the increase.

(b) A mortgages a certain plot of building land to B and afterwards erects a house on the plot. For the purposes of his security, B is entitled to the house as well as the plot.