'A' in lieu of debt from 'B' handovers the possession of his house to 'B' with a covenant to transfer of property in favour of 'B', but with provision for retransfer in case of repayment of debt. This type of mortgage is known as:
Verified Answer
A. Equitable mortgage
B. English mortgage
C. Usufructuary mortgage
D. Mortgage by conditional sale
Explanation:
Section 58(c) of the Transfer of Property Act defines a 'mortgage by conditional sale' where the mortgagor ostensibly sells the mortgaged property on condition that on default of payment, the sale shall become absolute, or on such payment, the buyer shall transfer the property to the seller. The description fits this definition.