If any party to an exchange or any person claiming through or under him is by reason of any defect in the title of the other party deprived of the thing or any part of the thing received by him in exchange, then, unless a contrary intention appears from the terms of the exchange, such other party is liable to him or any person claiming through or under him for loss caused thereby, or at the option of the person so deprived, for the return of the thing transferred, if still in the possession of such other party or his legal representative or a transferee from him without consideration.
Legal Commentary & Landmark Judgments: Section 119
Section 119 defines the statutory remedies of a party deprived of a thing received in exchange by reason of any defect in the title of the other party, entitling them to recover the property transferred or claim compensation.
If land received in an exchange is lost due to a prior hidden mortgage, sue under Section 119 for return of your original land if still held by the other party, or claim full market damages.