Exploring the Right to Sue for Mortgage Money: Section 68

December 4, 2023
A statue of Lady Justice

Property law encompasses a myriad of rights and obligations concerning real estate, including the crucial aspect of mortgage agreements. Among the fundamental aspects of mortgage law lies the concept of the right to sue for mortgage money, a pivotal provision often encapsulated within Section 68 of various legal frameworks.

Understanding Section 68: Right to Sue for Mortgage Money

What is Section 68?

Section 68 of Transfer of Property Act, 1882 deals specifically with the right of a mortgagee to sue for mortgage money owed by the mortgagor. It serves as a legal recourse for the mortgagee in cases where the mortgagor fails to meet their financial obligations outlined in the mortgage contract.

Can You Sue for Mortgage Money?

Yes, the provision under Section 68 affirms the right to take legal action to recover mortgage money owed by the borrower (mortgagor) to the lender (mortgagee). This clause forms an essential aspect of mortgage agreements, ensuring that the lender has legal recourse in the event of default by the borrower.

Understanding Mortgage Law:

Nature of Mortgage:

A mortgage is a legal agreement where a borrower pledges real property as collateral to secure a loan. This agreement typically involves the transfer of interest in the property to the lender with the promise that the property will be returned once the debt is repaid.

Rights and Obligations:

Rights of the Mortgagee: The lender, or mortgagee, has certain rights, including the right to receive mortgage payments in a timely manner as stipulated in the agreement.

Obligations of the Mortgagor: The borrower, or mortgagor, is obligated to make regular payments according to the terms of the mortgage agreement.

Default and Legal Recourse:

When the mortgagor fails to fulfill their payment obligations, it constitutes a default. In such instances, the mortgagee can initiate legal action to recover the outstanding mortgage money.

Process of Suing for Mortgage Money:

Notice of Default: Typically, before suing for mortgage money, the lender may issue a notice of default to the borrower. This formal notification informs the borrower about the default and provides an opportunity to rectify the situation.

Legal Proceedings: If the borrower fails to rectify the default, the lender can initiate legal proceedings. This involves filing a lawsuit in the appropriate court seeking to recover the outstanding mortgage amount.

Court Decision and Judgment: The court will evaluate the case, considering the terms of the mortgage agreement, evidence of default, and any defenses presented by the borrower. If the court finds in favor of the mortgagee, a judgment may be issued in their favor, requiring the borrower to repay the outstanding amount.

Enforcement of Judgment: Upon obtaining a favorable judgment, the mortgagee can take steps to enforce it, which may include seizing the property, foreclosure, or other means to recover the owed amount.


Section 68 of Transfer of Propety Act provides an essential mechanism for mortgagees to protect their interests by enabling them to sue for mortgage money in cases of default by the mortgagor. It serves as a crucial safeguard, ensuring the enforceability of mortgage agreements and the rights of lenders within the realm of property law. Understanding this provision is vital for both lenders and borrowers, as it delineates the legal framework governing mortgage relationships and the recourse available in case of default.

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