Multiple choice

The sale becomes absolute in case of mortgage by conditional sale, when

  1. borrower makes payment of the due amount

  2. borrower fails to make payment of the due amount

  3. loan is re-structured

  4. limitation expires

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A mortgage by conditional sale is where the mortgagor sells the property to the mortgagee on the condition that in case of default of repayment of the mortgage money, the sale will become absolute and on repayment of the money, the sale will become void and the mortgagee will transfer the property back to the mortgagor. Thus, option 2 is the correct answer.