Section 58(c) of the Transfer of the Property Act defines the "Mortgage by Conditional Sale".It may be defined as an ostensible sale on condition that upon repayment,the buyer shall transfer the property to the seller.During the Muslim rule,this kind of mortgage came in to vogue,as traking of interest is forbidden under the Mohammedan law.

The essentials features of mortgage by conditional sale.

1. If the mortgagor fails to repay the mortgage on a certain date,the sale becomes absolute.

2. If the mortgagor pays the mortgage debt on a certain date,the sale becomes void and the mortgagor becomes the owner.

3. if the mortgagor pays the mortgage debt,the buyer must retransfer the property to the seller.This transaction is mortgage by conditional sale.

4. The transaction resembles that of sale,though it is only a mortgage.

5. The ostensible sale becomes absolute sale,if the mortgagor fails to make payment on the specified date.This can be enforced by taking proceedings for forclose of the mortgage.The order of foreclosure by the court converts the mortgage by Conditional Sale into an absolute sale.

If the condition of retransfer is embodied in the document effecting the Ostensible sale,then such transaction is not regarded as a mortgage by Conditional Sale.

This is useful to known the Mortgage by Conditional Sale.