LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

akpragati (Chief Manager)     02 May 2013

Query on equitable mortgage

  i have the following doubt.

Whether it is  mandatory to obtain personal guarantee of  an individual when  equitable mortgage is created on his property by the bank.  What are the consequences /ramifications in case it is not obtained. 

Whether guarantee  can be restricted to the value of property.(at the mortgagors request). (Value may go up /down with time).

thanks in advance for the clarification

Pragati



Learning

 1 Replies

Rajendra K Goyal (Advocate)     02 May 2013

Liability is fixed on the basis of the guarantee in case of the default of the borrower. Without guarantee there would be no consideration for the equitable mortgage.To secure the liability equitable mortgage is obtained. A guarantor may fix his maximum liability in the contract and if the cover is less than the requirement further guarantee may be asked.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register