In the absence of a contract to the contrary, the mortgagor in every mortgage shall be deemed to contract with the mortgagee,—
(a) that the interest which the mortgagor professes to transfer to the mortgagee subsists, and that the mortgagor has power to transfer the same;
(b) that the mortgagor will defend, or, if the mortgagee be in possession of the mortgaged property, enable him to defend, the mortgagor's title thereto;
(c) that the mortgagor will, so long as the mortgagee is not in possession of the mortgaged property, pay all public charges accruing due in respect of the property;
(d) and, where the mortgaged property is a lease, that the rent, conditions and covenants of the lease have been paid and performed;
(e) and, where the mortgage is a second or subsequent encumbrance on the property, that the mortgagor will pay the interest from time to time accruing due on each prior encumbrance as also the principal money due on such prior encumbrance.
The benefit of the contracts mentioned in this section shall be annexed to and shall go with the interest of the mortgagee as such, and may be enforced by every person in whom that interest is for the whole or any part thereof from time to time vested.
Legal Commentary & Landmark Judgments: Section 65
Section 65 codifies the implied statutory covenants by the mortgagor, including covenants for title, defense of title, payment of public revenue and taxes, and payment of prior encumbrance interest.
Lenders can sue the mortgagor personally for damages under Section 65(a)/(c) if the mortgaged property is auctioned by municipal authorities for pre-existing tax arrears.