Right Of Subrogation Of Co-Mortgagor

Prakriti, Symbiosis Law School, NOIDA

ABSTRACT

The doctrine of subrogation is based on principles of equity and fairness, although it is concisely stated. The doctrine holds that the party who pays off a mortgage acquires all the rights of the mortgagee. This paper examines the doctrine and right of subrogation of co-mortgagor. Subrogation refers to the substitution of one person or entity for another, whereby the new party assumes the rights and obligations of the original party. Essentially, it involves stepping into someone else's position and taking on their legal responsibilities and entitlements. This pertains to any person, aside from the borrower or co-borrower, who holds an interest in the property under mortgage and seeks to repay the mortgage, thereby gaining the right to replace the lender.

The Transfer of Property Act of 1882 plays a crucial role in establishing a framework of regulations within financial markets that utilize various forms of mortgage to raise capital. It meticulously outlines the essential criteria defining such transactions and establishes a fair distribution of responsibilities and entitlements for both parties involved, ensuring enforceability under the law.