Does equitable mortgage have to be registered?

Is it necessary to register equitable mortgage?

It is not always necessary to register equitable mortgage. However, with mounting housing loan frauds, many states have made registration compulsory. … Some state governments have made it mandatory to register equitable mortgages by filing a notice of intimation of an equitable mortgage within a prescribed period.

Is an unregistered mortgage an equitable mortgage?

An equitable mortgage is unregistered and is not a charge on the land. Instead, it serves as the representation of a promise by the borrower to reserve the relevant equity in the property for the lender when the property is sold.

Which mortgage is not required to be registered?

A mortgage by deposit of title deed does not require registration. Sometimes, a memorandum accompanies the deposit of title deeds.

Can a deed of mortgage be made without registration?

Registration of mortgage deed is essential to give legal validity to the document. In case of Mortgage by Delivery of Title Deed, registration is not required.

What happens if a mortgage is not registered?

It is becoming more common for mezzanine lenders to accept an unregistered mortgage as security for a loan. While an unregistered mortgage gives the lender priority over any of the borrower’s unsecured creditors, an unregistered mortgage does not give a lender the same entitlements or benefits as a registered mortgage.

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How can an equitable mortgage be created?

As the name suggest, equitable mortgage is created by the borrower in favour of the lender by deposit of title deed of immovable property as security to a lender until the loan is fully repaid. This creates a charge on the property, though no legal procedure is involved.

Is an unregistered mortgage valid?

The Apex Court held that the though an unregistered mortgage deed is not admissible as a document of title however, the same could be relied on for collateral purposes such as a proof of possession where the case set up is of adverse possession.

What is the difference between a legal and equitable mortgage?

A legal mortgage is the most secure and comprehensive form of security interest. … An equitable mortgage only transfers a beneficial interest in the asset to the mortgagee with legal title remaining with the mortgagor.

Can legal heir create equitable mortgage?

In legal opinion obtained, it is suggested that the bank can create equitable mortgage by taking signatures of party and his mother or by obtaining no objection certificates from all legal heirs(including party’s sisters)and by obtaining latest sandaran khasra.

What does Equitable mortgage mean?

Equitable Mortgage Meaning: Equitable mortgage is a type of mortgage where the terms of the agreement are made solely between the mortgagor and the mortgagee. There is no third party or government agency involved.

How does the bank decide whether to create equitable mortgage or registered mortgage?

In an equitable mortgage, the owner has to transfer his title deed to the lender, thereby creating a charge on the property. The owner also orally confirms the intent of creating a charge on the property. … Stamp duty and charges are comparatively low, relative to a registered mortgage.

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