The legislation safeguards the rights of both parties involved in a mortgage transaction. Mortgage laws are formulated to protect the rights and welfare of the borrower and lender under a mortgage agreement. Legal frameworks provide the rights, responsibilities, and methods of seeking redress to guarantee fairness and enforceability in property purchase agreements.

Lenders possess a range of options to address defaults, such as initiating foreclosure procedures, selling the property, and safeguarding the mortgagor’s right to redeem the property. These measures guarantee the security of creditors and the integrity of contracts.

A conditional sale mortgage distinguishes itself from other kinds of mortgages by certain conditions that must be met for the transaction to be finalised. In this kind of mortgage, the property is sold to the mortgagee, but with the proviso that the sale will only be finalised if the debt is returned after a specific date. Payment renders the transaction null and invalid, resulting in the property reverting to the mortgagor.

A simple property mortgage is differentiated from others by its primary and uncomplicated nature. In a conventional mortgage arrangement, the borrower undertakes to repay the loan while retaining property ownership. In case the borrower defaults, the lender is empowered to sell the property to recover the outstanding debt.

Mortgages may be categorised into many types, such as simple mortgages, conditional sale mortgages, usufructuary mortgages, English mortgages, equitable mortgages, and anomalous mortgages. Each category establishes distinct entitlements and responsibilities for the individuals or groups participating.