mortgage document
Manoj
(Querist) 29 June 2011
This query is : Resolved
Hello to all Experts. can a person be a mortgagor but not a guarantor. For eg A wants to borrow a loan wherein B mortgage his property but B does not want to be a guarantor. A does not mortgage any of his property. A is only the borrower. B does not want to sign guarantee document
1) Is it possible.
2) If it is possible what type of mortgage should be created i.e. Legal or Equitable mortgage.
2) Can someone provide me with the format of such mortgage document as i need relevant provisions/clauses of such mortgage, wherein a person is a mortgagor but he is not guarantor or surety. A person does want the liability of a surety.
AMIT SANKLECHA
(Expert) 30 June 2011
Hi Manoj
In your case, when a person who requires loan & the person who provides a property as a security, then in such case both are jointly & severally liable.
In case if there is a default for repayment of loan by "A" then ultimately the property of "B" is liable to be attached for which he is required to transfer such rights through mortgage.
Thus Executing a Mortgage deed is as good as taking the responsibilty to repay loans by sale of security for repayment of outstanding dues.
To Convey, If a property of 3rd person is mortgaged & the loan is issued to 2nd person i.e. borrower, then in such case both the borrower as well as security owner are jointly & severally liable & both of them are required to sign the Documents.
Hope sso this clarifies your query.
Regards
Amit Sanklecha
Manoj
(Querist) 30 June 2011
I Thank you for your reply.
malipeddi jaggarao
(Expert) 01 July 2011
1) No
2) Since answer to No.is No, this is not applicable.
3) There is no such format where a person does not stand as guarantor still wants to mortgage his property.
If the creditor (Bank) wishes to accept the property of a person other than the principal/joint borrower, the offeror should stand as guarantor. Then only a contract can be established between the creditor (Bank) and the third party who is giving his property for mortgage. If he does not wish to sign the guarantee, he is no way connected with the transaction, passing of consideration can not be proved and hence the credit institution 9Bank) will not accept such offers.
Manoj
(Querist) 08 July 2011
Thank you Sirs/experts for you reply
