Multiple choice

A loan secured by mortgage of immovable property is repayable on demand. The period of limitation in this case will be

  1. 3 years

  2. 12 years from the date of mortgage deed

  3. 3 years from the date of mortgage deed

  4. None of the above
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B Correct answer
Explanation

In the case of advances allowed against equitable/registered mortgage of immovable property, the limitation period for personal decree against a borrower is 3 years. For the sale of mortgaged property, the limitation period is 12 years. In either case, the limitation will start from the date the mortgage money becomes due and payable in terms of loan document/mortgage deed.

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