mortgage deed
Querist :
Anonymous
(Querist) 19 January 2010
This query is : Resolved
what is the difference between mortgage deed by way of deposit of title deeds and mortgage deed?
A V Vishal
(Expert) 19 January 2010
A legal document relating to the mortgage lender's interest in the property and containing the terms of the mortgage.
On the other hand, mortgage deed by way of deposit of title deeds is a simple equitable mortgage where the title deeds are in the custody of the Mortgagee and the same is notified by way of its registration.
Querist :
Anonymous
(Querist) 20 January 2010
The Deposit of Title Deed is also known as the Equitable Mortgage in which only the Title Deeds of the property is deposited with the mortgagee and not property to secure the loan, and the Mortgagor will not have any rights over the property directly, In case of default in payment of the loan amount by the Mortgagee, the Mortgagor has to file a suit for recovery against the Mortgagee not for the possession of the property in subject. Mortgage as per section 58(f) is a equitable mortgage which is collateral security type of mortgage where only title deeds of the property are deposited with the mortgagor.
The Mortgage is Hypothecation of a property to a bank or housing financial Co. as a security for loan taken. Mortgage of Property gives the lender a right to acquire and sell the property in case of default by the borrower in repayment of the loan and other dues as per the terms and conditions agreed upon. It creates a legally binding contract between the parties. The execution of the mortgage documentation is done simultaneously with the loan documentation. The Bank has the First Right on the property for which they provide loan. In case of more than one lender Pari Passu Charge is created in favour of all the lenders. Mortgage as per the Transfer of Property Act, Section 58(b) is registered mortgage, where the mortgagor registers the mortgage with a Sub Registrar.
