New SIDBI Grade A New Batch Starts on Nov 18

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    Question

    A mortgages a piece of land to B and later on builds a house thereon, which of the following conditions is applicable?

    A The house is not a part of mortgage loan security. Correct Answer Incorrect Answer
    B The house is also subjected to mortgage and a security along with piece of land. Correct Answer Incorrect Answer
    C B has a choice in between the piece of land or the house for security. Correct Answer Incorrect Answer
    D A shall decide one of both the things as security of mortgage loan. Correct Answer Incorrect Answer
    E Any of b, c and d. Correct Answer Incorrect Answer

    Solution

    As per s.70 of the Transfer of Property Act, 1882  which talks about the same illustration and the concept of accessions to property. S. 70. Accession to mortgaged property.— 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   (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.

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