CHAPTER III OF SALES OF IMMOVEABLE PROPERTY

Section 56: Marshalling by subsequent purchaser

¹ [If the owner of two or more properties mortgages them to one person and then sells one or more of the properties to another person, the buyer is, in the absence of a contract to the contrary, entitled to have the mortgage-debt satisfied out of the property or properties not sold to him, so far as the same will extend, but not so as to prejudice the rights of the mortgagee or persons claiming under him or any other person who has for consideration acquired an interest in any of the properties.]

Footnotes in the official text

1.Subs. by s. 18, ibid., for s. 56.

Questions on this section

1 question in 7 of our papers cite Section 56. Try these from the free papers:

1. A mortgages his two houses, X and Y, to M to secure a single loan. A then sells house X to B. There is no contract to the contrary. Under Section 56 of the Transfer of Property Act, 1882, B is entitled to have:

Practise questions on Transfer of Property Act