Equitable Mortgage
SARAVANAN.R
(Querist) 26 August 2009
This query is : Resolved
Sir,
Can you please tell me, what is equitable mortgage. Is it same as Mortgage. What is this extension of equitable mortgage.
Saravanan
Y V Vishweshwar Rao
(Expert) 26 August 2009
Equitable Mortgage is by Deposit of Title deeds by the Martgagor with the Mortgagee with an intention to create security for recovery of the Debt ! The Deposit of title Deeds and intention of Security are necessary , it is one kind of Mortgages , it is Covered u/s 58(F) of Transfer of Proerty Act . The Procedure for Enforcement of the Security/mortgage for recovery of debt is the same, as that of Simple Regd Mortgage/other Mortgages !
Arul Kumar
(Expert) 26 August 2009
Equitable mortgage means mortgage by deposit of title deeds. It appears in Transfer of Properties Act as mortgage by deposit of title deeds. It is actually legal mortgage in India but by custom we still call it equitable mortgage.
In equitable mortgage ownership is not transferred but just a property’s interest is transferred to the mortgagee and hence the mortgagee cannot sell the property for realisation of unpaid dues without obtaining court's order.
