Simple mortgage :

According to Section 58(b) of the Transfer of Property Act, a simple mortgage is a transaction whereby, ‘without delivering possession of the mortgaged property, the mortgagor binds himself personally to pay the mortgage money and agrees, expressly or impliedly, that in the event of his failing to pay according to his contract, the mortgagee shall have a right to cause the mortgaged property to be sold by a decree of the Court in a suit and the proceeds of the sale to be applied so far as may be necessary in payment of the mortgage money.

Features of simple mortgage

(i) The mortgagee has no power to sell the property without the intervention of the court

In case there is shortfall in the amount recovered even after sale of the mortgaged property the mortgagor continues to be personally liable for the shortfall.

(ii) The mortgagee has no right to get any payments out of the rents and produce of the mortgaged property

(iii) The mortgagee is not put in possession of the property

(iv) Registration is mandatory if the principal amount secured is ‘ 100 and above