Transfer of Property Act Section 92 — Subrogation
CHAPTER IV OF MORTGAGES OF IMMOVEABLE PROPERTY AND CHARGES — Redemption
General
Summary
When someone who is entitled to redeem a mortgaged property—other than the mortgagor (the borrower)—or a co-borrower pays off the mortgage, they step into the shoes of the original lender. This means they gain the same rights the lender had against the borrower or any other lender, but only for purposes of redeeming, foreclosing, or selling the property. This stepping into the lender’s position is called the right of subrogation. Also, if a person gives money to the borrower to pay off the mortgage, that person gets this right only if the borrower agreed in a registered document that the payer would be subrogated. The right of subrogation applies only if the mortgage has been fully paid off.
Official Text
Any of the persons referred to in section 91 (other than the mortgagor) and any co-mortgagor shall, on redeeming property subject to the mortgage, have, so far as regards redemption, foreclosure or sale of such property, the same rights as the mortgagee whose mortgage he redeems may have against the mortgagor or any other mortgagee. The right conferred by this section is called the right of subrogation, and a person acquiring the same is said to be subrogated to the rights of the mortgagee whose mortgage he redeems. 1. Ins. by Act 20 of 1929, s. 45. 2. Subs. by s. 45, ibid., for “as the case may be”. 3. Added by s. 45, ibid. 4. For the repealed provisions, as re-enacted, see (Act 5 of 1908), Sch. I, Order XXXIV. 5. Subs. by Act 20 of 1929, s. 46, for s. 91. 6. Ins. by s. 47, ibid. Original ss. 92 to 94 were rep. by Act 5 of 1908, s. 156 and the fifth Schedule. A person who has advanced to a mortgagor money with which the mortgage has been redeemed shall be subrogated to the rights of the mortgagee whose mortgage has been redeemed, if the mortgagor has by a registered instrument agreed that such persons shall be so subrogated. Nothing in this section shall be deemed to confer a right of subrogation on any person unless the mortgage in respect of which the right is claimed has been redeemed in full.