Section 100 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
A charge is security over immovable property for the payment of money which does not amount to a mortgage. Section 100 defines it, says it can arise by the act of the parties or by operation of law, applies the simple mortgage rules to it, and protects a buyer who paid for the property without notice of the charge. This is explained as per the text of the Act consulted.
Where the immovable property of one person is, by act of parties or operation of law, made security for the payment of money to another, and the transaction does not amount to a mortgage, the other person has a charge on the property. The provisions that apply to a simple mortgage apply to a charge so far as may be. A trustee's charge on trust property for proper expenses is outside this rule, and, save as another law expressly provides, a charge cannot be enforced against property in the hands of someone who got it for consideration and without notice of the charge.
Source note
The text consulted is a publisher's print of the Act showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003); later amendments should be checked. Parts of section 100 are printed inside square brackets, which marks inserted or substituted wording without naming the amending Act. Section 99 is printed only with a repeal note (the Code of Civil Procedure, 1908 (5 of 1908), section 156 and Schedule V) and is not explained. For the kinds of mortgage that a charge is distinguished from, see our article on Section 58.
If you are drafting security and want to be sure whether it creates a mortgage or only a charge, our loan documentation support service reviews such documents.
What the section says
The definition
"Where immovable property of one person is by act of parties or operation of law made security for the payment of money to another, and the transaction does not amount to a mortgage, the latter person is said to have a charge on the property."
Three things have to be present:
- Immovable property of one person.
- It is made security for payment of money to another, either by the act of the parties or by operation of law.
- The transaction does not amount to a mortgage.
If all three are present, the person entitled to the money has a charge. The text does not list examples of charges by operation of law, so none are given here.
Simple mortgage rules apply
All the provisions earlier in the Chapter which apply to a simple mortgage apply, so far as may be, to such a charge. In practice, rules on redemption (section 60), the mortgagee's remedies (sections 67 to 69) and similar topics are read across to a charge. Our articles on Section 60 and sections 67 and 67A are therefore also relevant here. "So far as may be" means the rules apply to the extent they fit a charge.
Two limits in the second paragraph
- Trustee's charge. Nothing in section 100 applies to the charge of a trustee on the trust-property for expenses properly incurred in the execution of his trust. For the law of trusts see our article on the Indian Trusts Act, 1882 on how a trust is created; the reader should check the current law for the corresponding provision of that Act.
- Buyer for consideration without notice. Save as otherwise expressly provided by any law for the time being in force, no charge shall be enforced against any property in the hands of a person to whom it has been transferred for consideration and without notice of the charge.
Charge compared with mortgage
| Feature | Mortgage | Charge (section 100) |
|---|---|---|
| Core idea | Transfer of an interest in specific immovable property to secure money | Immovable property made security for payment of money, without amounting to a mortgage |
| How it arises | By the parties' transaction as the Act defines | By act of parties or operation of law |
| Rules that apply | The rules for its kind | Simple mortgage rules, so far as may be |
| Effect on a buyer for value without notice | Not addressed in this section | Charge cannot be enforced against that buyer, save as another law expressly provides |
The wider difference between a charge, a mortgage, hypothecation and a pledge is explained in our guide on what a charge is, listed under Read next.
Example
Mohan agrees in a family settlement document that his house will stand as security for the monthly maintenance he owes his sister, Pooja, but the document does not transfer any interest in the house to her in the manner of a mortgage. This can amount to a charge on the house for her payment. If Mohan then sells the house to Kavita, who pays full value and has no notice of Pooja's charge, section 100 says the charge cannot be enforced against the house in Kavita's hands. If Kavita had notice, the protection is not available.
A note on company borrowers
A company that creates a charge over its assets has separate filing duties with the Registrar of Companies, under the Companies Act. This is a different law from this Act; for a company borrower, see our guide on creation and registration of a charge. It is not an explanation of section 100.
Practical points
- Buyers: check whether the property carries a charge before paying; notice defeats the protection.
- Lenders and payees: a written, clearly described security is better than a vague one; if the document is a mortgage, the mortgage rules apply fully.
- Check the encumbrance position: checking an encumbrance certificate is a starting point.
- Registration and stamp duty: not in this Act; the position depends on the document and the State.
Need help with property security documents?
Whether a document creates a mortgage or only a charge changes the rights of everyone involved. Our loan documentation support team can read the document with you and suggest clear wording.
Key takeaways
- A charge arises where immovable property is made security for payment of money, by act of parties or operation of law, without amounting to a mortgage.
- The simple mortgage rules apply to a charge so far as may be.
- A trustee's charge for proper expenses is outside the section.
- A charge cannot be enforced against a buyer for consideration without notice, save as another law expressly provides.
- Company borrowers have separate filing duties under another law.
Read next
- Section 58: kinds of mortgage
- Sections 93 to 98: tacking, mesne mortgagee and anomalous mortgage
- Sections 101 to 104: no merger, notice and tender
- What is a charge: mortgage, hypothecation and pledge explained
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.