Law of Property Course Cover - Sridhar Insights Legal-Tech and Cyber Law Research
| |

Sale & Mortgage | Law of Property | MCQ Quiz with Answers | Test Your Legal Knowledge

BySridhar Insights
TPA — Sale & Mortgage MCQ Quiz

TPA — Sale & Mortgage MCQ Quiz (1–50)

(1). [AIBE 2021] Which section of the TPA defines ‘Sale’?

  • [A]. Section 52
  • [B]. Section 54
  • [C]. Section 55
  • [D]. Section 58

(2). [CLAT-PG 2019] An agreement to sell (Contract for sale) of immovable property:

  • [A]. Creates an immediate interest in the property
  • [B]. Creates a charge on the property
  • [C]. Does not, of itself, create any interest in or charge on such property
  • [D]. Transfers absolute ownership

(3). For a valid sale under TPA, the consideration must be:

  • [A]. Love and affection
  • [B]. Price (money)
  • [C]. Another property (barter)
  • [D]. Past services

(4). According to Section 54, delivery of tangible immovable property takes place when:

  • [A]. The agreement is signed
  • [B]. The seller places the buyer in possession of the property
  • [C]. The earnest money is paid
  • [D]. The keys are shown

(5). [AIBE 2023] Under Section 55, before completion of the sale, the seller is bound to:

  • [A]. Disclose any material defect in the property of which he is aware
  • [B]. Pay all public charges and rent accrued due
  • [C]. Take care of the property as an owner of ordinary prudence
  • [D]. All of the above

(6). If the seller fails to disclose a material latent defect in the property, it amounts to:

  • [A]. Fraud
  • [B]. Breach of contract only
  • [C]. Negligence
  • [D]. Nothing, caveat emptor applies

(7). [CLAT-PG 2022] How many types of mortgages are defined under Section 58 of the TPA?

  • [A]. 4
  • [B]. 5
  • [C]. 6
  • [D]. 7

(8). In which type of mortgage is there NO delivery of possession, but the mortgagor binds himself personally to pay the debt?

  • [A]. Simple Mortgage
  • [B]. Usufructuary Mortgage
  • [C]. English Mortgage
  • [D]. Anomalous Mortgage

(9). Bare Act Illustration: A transfers his property to B with a condition that if A repays the loan on a certain date, the sale shall become void. This is a:

  • [A]. English Mortgage
  • [B]. Mortgage by Conditional Sale
  • [C]. Usufructuary Mortgage
  • [D]. Anomalous Mortgage

(10). [AIBE 2020] In a Mortgage by Conditional Sale, the condition must be embodied in:

  • [A]. A separate registered agreement
  • [B]. An oral agreement
  • [C]. The same document which effects or purports to effect the sale
  • [D]. A promissory note

(11). The defining feature of a Usufructuary Mortgage is:

  • [A]. Personal liability of the mortgagor
  • [B]. Delivery of possession and enjoyment of rents/profits by the mortgagee
  • [C]. Absolute transfer of title
  • [D]. Deposit of title deeds

(12). In an English Mortgage, the transfer of property is:

  • [A]. Absolute, with a proviso for re-transfer upon payment
  • [B]. Ostensible
  • [C]. Partial
  • [D]. Voidable

(13). [CLAT-PG 2018] A mortgage by deposit of title deeds is also known as:

  • [A]. Anomalous mortgage
  • [B]. Equitable mortgage
  • [C]. Usufructuary mortgage
  • [D]. Simple mortgage

(14). To create a valid equitable mortgage, the title deeds must be deposited:

  • [A]. Anywhere in India
  • [B]. Only in the towns specified in the TPA or notified by the State Government
  • [C]. Only in the capital of India
  • [D]. At the Sub-Registrar’s office

(15). [AIBE 2019] Does a mortgage by deposit of title deeds require a registered instrument?

  • [A]. Yes, compulsorily
  • [B]. No, the mere delivery of deeds with intent to create security is sufficient
  • [C]. Yes, if the loan exceeds ₹1,00,000
  • [D]. Only if the bank demands it

(16). Section 59 requires that all mortgages (other than by deposit of title deeds) securing ₹100 or more must be:

  • [A]. Oral
  • [B]. Written, signed, and attested by at least two witnesses, and registered
  • [C]. Written and notarized
  • [D]. Written and attested by one witness

(17). [CLAT-PG 2021] The right of the mortgagor to get back the property on payment of the debt is called the right of:

  • [A]. Foreclosure
  • [B]. Subrogation
  • [C]. Redemption
  • [D]. Marshalling

(18). The right of redemption is a:

  • [A]. Statutory and inherent right under Section 60
  • [B]. Contractual right only
  • [C]. Right granted at the court’s discretion
  • [D]. Fundamental right under the Constitution

(19). [AIBE 2022] “Once a mortgage, always a mortgage” implies that:

  • [A]. The loan can never be repaid
  • [B]. The property can never be sold
  • [C]. Any condition that prevents redemption is void as a clog
  • [D]. Mortgages are perpetual

(20). A condition in a mortgage deed stating that “if the loan is not repaid within 5 years, the mortgage shall be deemed an absolute sale” is:

  • [A]. Valid and enforceable
  • [B]. Void as a clog on redemption
  • [C]. Voidable by the mortgagee
  • [D]. A valid conditional sale

(21). The mortgagor’s right of redemption can be extinguished by:

  • [A]. Act of parties
  • [B]. Decree of a court
  • [C]. Both (a) and (b)
  • [D]. It can never be extinguished

(22). [CLAT-PG 2023] The corresponding right of the mortgagee to recover the debt is the right to:

  • [A]. Redemption
  • [B]. Foreclosure or Sale (Section 67)
  • [C]. Contribution
  • [D]. Subrogation

(23). A suit for foreclosure is essentially a suit to:

  • [A]. Sell the property
  • [B]. Deprive the mortgagor absolutely of his right to redeem the property
  • [C]. Claim mesne profits
  • [D]. Register the property

(24). Which mortgagee CANNOT sue for foreclosure?

  • [A]. Mortgagee by conditional sale
  • [B]. Simple mortgagee (can only sue for sale)
  • [C]. English mortgagee
  • [D]. Anomalous mortgagee

(25). [AIBE 2018] Can a Usufructuary Mortgagee sue for foreclosure or sale?

  • [A]. Yes, for sale
  • [B]. Yes, for foreclosure
  • [C]. No, he can only retain possession until the debt is recovered from profits
  • [D]. Yes, with court permission

(26). The doctrine of Marshalling is covered under which section?

  • [A]. Section 60
  • [B]. Section 81
  • [C]. Section 82
  • [D]. Section 92

(27). [CLAT-PG 2020] Under Section 81 (Marshalling), a subsequent mortgagee can compel the prior mortgagee to satisfy his debt out of:

  • [A]. The property NOT mortgaged to the subsequent mortgagee
  • [B]. The property mortgaged to the subsequent mortgagee
  • [C]. The personal assets of the mortgagor
  • [D]. The government treasury

(28). Marshalling cannot be exercised if it prejudices the rights of:

  • [A]. The mortgagor
  • [B]. The prior mortgagee or any other person who has acquired an interest for consideration
  • [C]. Unsecured creditors
  • [D]. The state

(29). [AIBE 2021] The doctrine of Contribution is dealt with under Section:

  • [A]. 81
  • [B]. 82
  • [C]. 91
  • [D]. 92

(30). Under Section 82, when two properties subject to a common debt belong to different owners, how is the debt shared?

  • [A]. Equally
  • [B]. Rateably, in proportion to the value of the properties
  • [C]. The owner of the larger property pays all
  • [D]. The court decides arbitrarily

(31). A Charge is defined under which section of the TPA?

  • [A]. Section 54
  • [B]. Section 58
  • [C]. Section 100
  • [D]. Section 105

(32). [CLAT-PG 2019] The fundamental difference between a Mortgage and a Charge is that:

  • [A]. A charge involves a transfer of interest, a mortgage does not
  • [B]. A mortgage involves a transfer of interest, a charge does not
  • [C]. A charge requires no consideration
  • [D]. A mortgage is only by operation of law

(33). A Charge can be created by:

  • [A]. Act of parties only
  • [B]. Operation of law only
  • [C]. Both act of parties and operation of law
  • [D]. Neither

(34). [AIBE 2023] Does a charge bind a bona fide purchaser for value without notice?

  • [A]. Yes
  • [B]. No, Section 100 explicitly protects such purchasers
  • [C]. Only if created by court decree
  • [D]. Only if registered

(35). A seller’s charge on the property for unpaid purchase money under Section 55(4)(b) is an example of a charge created by:

  • [A]. Operation of law
  • [B]. Act of parties
  • [C]. Will
  • [D]. Custom

(36). In an English mortgage, if the mortgagor repays the debt on the specified date, the mortgagee must:

  • [A]. File a suit
  • [B]. Pay damages
  • [C]. Re-transfer the property to the mortgagor
  • [D]. Retain 10% of the property

(37). [CLAT-PG 2022] Hypothetical: A mortgages his property to B. The deed states B will take possession and adjust the principal and interest from the rent. This is a:

  • [A]. Simple Mortgage
  • [B]. Usufructuary Mortgage
  • [C]. English Mortgage
  • [D]. Equitable Mortgage

(38). Which mortgagee has a right to sell the property without court intervention under Section 69 (in specific cases)?

  • [A]. Usufructuary Mortgagee
  • [B]. English Mortgagee (where neither party is a Hindu, Muslim, Buddhist)
  • [C]. Simple Mortgagee
  • [D]. Mortgagee by Conditional Sale

(39). [AIBE 2020] Subrogation (Section 92) means:

  • [A]. Cancelling the mortgage
  • [B]. Substitution of a person in place of the creditor (mortgagee) after paying off the prior debt
  • [C]. Selling the property
  • [D]. Merging two properties

(40). The limitation period for filing a suit for redemption of a mortgage is:

  • [A]. 3 years
  • [B]. 12 years
  • [C]. 30 years
  • [D]. 60 years

(41). A mortgage deed contains a clause: “If the interest is not paid for 6 months, the mortgagee can enter possession.” This clause is:

  • [A]. A clog on redemption
  • [B]. Valid, creating an anomalous mortgage
  • [C]. Void ab initio
  • [D]. Illegal

(42). [CLAT-PG 2018] Suraj Lamp & Industries case severely restricted property sales via:

  • [A]. Registered Sale Deeds
  • [B]. General Power of Attorney (GPA) and Wills
  • [C]. Oral agreements
  • [D]. Court decrees

(43). Under Section 55(1)(d), the seller is bound to execute a proper conveyance of the property when:

  • [A]. The buyer pays the amount due in respect of the price
  • [B]. The contract is signed
  • [C]. The broker demands it
  • [D]. The court orders it

(44). [AIBE 2019] If the buyer discovers a defect in the seller’s title after the sale is completed, the buyer can rely on the seller’s implied covenant for title under:

  • [A]. Section 55(1)(a)
  • [B]. Section 55(2)
  • [C]. Section 55(3)
  • [D]. Section 55(4)

(45). Under Marshalling (Sec 81), the subsequent mortgagee’s right is subject to:

  • [A]. The prior mortgagee not being prejudiced
  • [B]. The mortgagor’s consent
  • [C]. The court’s discretion
  • [D]. The Registration Act

(46). A co-mortgagor who pays off the entire mortgage debt steps into the shoes of the mortgagee. This is called:

  • [A]. Marshalling
  • [B]. Contribution
  • [C]. Subrogation
  • [D]. Novation

(47). [CLAT-PG 2021] Which type of mortgage is most commonly used by banks for housing loans in metropolitan cities to avoid heavy stamp duty?

  • [A]. English Mortgage
  • [B]. Usufructuary Mortgage
  • [C]. Mortgage by Deposit of Title Deeds (Equitable)
  • [D]. Conditional Sale

(48). The rule of Contribution (Sec 82) is subject to a contract to the contrary.

  • [A]. True
  • [B]. False
  • [C]. True only for movable property
  • [D]. False, it is absolute

(49). [AIBE 2022] In a simple mortgage, the remedy of the mortgagee is:

  • [A]. Foreclosure
  • [B]. To take possession
  • [C]. To sue for sale of the property
  • [D]. To keep the property

(50). A transfer of property made to secure the payment of an existing or future debt is the statutory definition of:

  • [A]. Sale
  • [B]. Mortgage
  • [C]. Exchange
  • [D]. Gift

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *