The Book Of ( Rahn ) Mortgage

It is necessary to form this contract with an offer and acceptance of the parties. Verbal pronouncement is not necessary, action and deeds can also serve the purpose. Taking charge or possession as being a condition is objectionable but according to a strong reason such condition is necessary.

Rule (817) The mortgaged property must be an owned substance that one can take possession of and could validly be sold and the mortgage must be against an established right as a substance or the profits of something.

Rule (818) If one mortgages someone else's property along with his own property, for his own property the contract is binding; the rest depends upon the permission of the other owner.

Rule (819) From the side of Mortgager the contract is binding.

Rule (820) A young-bearing property mortgaged does not subject the young to such contract.

Rule (821) The profit of the mortgaged property belongs to the owner, Mortgage for one of two loans is not a mortgage for the other, if one receives another mortgaged property as loan, and forms a contract to let the first mortgaged property cover both loans, it is considered valid.

Rule (822) It is lawful for the guardians of the minors to mortgage the property of the dependents to safe guard their interests.

Rule (823) The mortgagee is not allowed to use the mortgaged property without the permission of the mortgager and it is not an offense if the mortgager uses the mortgaged property as such that is not against anyone's rights in such contract and the mortgager is not permitted to use the property in someway against the interest of the deal without permission of the mortgagee. In the rule about the goods to be exchanged in a transaction it was mentioned whether or not the mortgager can sell the substance of the mortgaged property with the knowledge of buyer or his ignorance in the section dealing with conditions required in the merchandise on both sides of the contract.

Rule (824) If the mortgagee sets a condition in the contract requiring the profits of the mortgaged property to go to mortgagee during the whole term for free, if this does not lead to stipulating in loan or delaying the loan, such condition is valid. The same rule applies if the condition requires that the mortgagee have the profits of the mortgaged property in exchange for rent for the length of the term. If the condition is valid it becomes necessary to uphold it to the end of the term, even if the mortgager has become free from his obligation.

Rule (825) If in the contract a condition is set to let the mortgagee or someone else to act as agent in the selling, the agent cannot be removed from such task for life.

Rule (826) If the mortgager in his will says that the mortgagee can sell the mortgaged property and accept it as payment for the mortgage money, the will is binding and the heirs cannot make the mortgagee to return the property to be paid from other properties.

Rule (827) The right in mortgage is inheritance, if the mortgagee dies the right is transferred to his heirs.

Rule (828) The mortgagee as a custodian is not liable for the mortgaged property without neglect or trespassing, otherwise, he is liable for its kind, if it is exchanged for its kind; if not, the cost of the time of neglect or trespassing and his words on oath are accepted in the

matter of price and not having any neglect, and the words of the mortgager are accepted about the amount of liability and the loan.

Rule (829) The mortgagee has the priority over others demanding payment from the mortgaged property if the mortgager becomes bankrupt, if any thing is left after paying debts the mortgagee shares others in it, and if any thing is left from mortgage and the mortgagee demands payment because of other loans besides mortgage, he shares it equally with others.

Rule (830) If the mortgagee uses the property without the permission of the mortgager, he is liable and he has to pay rent.

Rule (831) If the mortgager authorizes the sale of the property before the end of the term, payment received is not used without the permission of the mortgagor until the end of the terms of mortgage, if the mortgager does not authorize to pay off the mortgage from the sale money the mortgage can accept the money for mortgage payment without his permission, likewise, if the mortgager does not authorize the sale and refuses to pay the loan, the mortgagee is allowed to sell and collect payment without his permission and it is a preferable precautionary rule to consult the high authority of Shari'a, in this case.

Rule (832) If the mortgage is for loan payable after a certain times and the property (mortgaged) is perishable like fruits etc., if the mortgager has set a condition requiring not to sell before the end of the term, the mortgage is void, otherwise, it must be sold and collected as mortgage payment if the mortgager or his agent sells it, the matter is settled, and if he refuses, the high authority of shari'a makes him to do so if this can not be done, the authorities or their agents sell it and if they are not available, the mortgagee sells it.

Rule (833) If the mortgagee is afraid of the heirs of the mortgager after his death, and has no witness for the mortgage, he is allowed to collect as mortgage payment from the mortgaged property.