What is Equitable mortgage?
Equitable mortgage is also known as Mortgage by deposit of title deeds 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.
What is token registered mortgage?
Normally, a token mortgage is registered for a minimal amount of the marked-up price of the facility or for a small portion of D.P. Note amount, while to cover the remaining amount of D.P. Note equitable mortgage is created on the property offered as security.
What is registered mortgage?
Registered mortgage is also known as ‘Deed of Trust’. A registered mortgage meets all the necessary legal requirements to create a mortgage or a charge. If the borrower repays the loan according to the terms and conditions of the home loan agreement, the title of the property is given back to the borrower.
Why do banks prefer equitable mortgage?
Why Banks Prefer Registered Mortgages? Banks prefer Registered Mortgages as the Equitable Mortgage lacks records of loans on property in the office of Sub-Registrar. In an equitable mortgage, only the lender and the borrower are aware of the mortgage/charge made on the property.
Is equitable mortgage be registered?
The equitable mortgage does not need any registration. Registration is mandatory under the registered mortgage.
Can a mortgaged property be sold?
Even as the property remains mortgaged, you may want to sell it. Since all the original property documents are in the custody of the lender until the loan is closed, one can sell a mortgaged property with the process stated below.
What happens if a mortgage is not registered?
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.
Who can do equitable mortgage?
Yes the equitable mortgage can be created of the individual is registered money lender and had license for same. See any person trust involved in money lending business and is registered then the mortgage can be created. An equitable mortgage on an immovable property can be created by a written deed.
Does equitable mortgage need to be registered?
Is an equitable mortgage enforceable?
Equitable mortgages are enforceable only through the principles of equity, and need not be registered before it is enforced. Enforcement proceedings are brought in the Equity Division of the Supreme Court and default judgment is by way of Notice of Motion.
Is registration of equitable mortgage compulsory?
It is not always necessary to register equitable mortgage. However, with mounting housing loan frauds, many states have made registration compulsory.
Can you sell a house that is mortgaged?
You can certainly sell a house with an existing mortgage. It’s important to consider your existing balance and whether it’s the right time for you to sell. Your real estate agent can help you set a fair listing price and give you tips on preparing to sell.
When can bank takes possession of your house?
If you fail to respond the legal notice, the bank will wait for three to five months and then the bank will declare your property as Non-performing Asset (NPA). Once you are considered as a loan defaulter, the bank will start the procedure for taking over your house.
How do you enforce an equitable charge?
He can either:
- sue the mortgagor personally, or.
- apply to the court for an order for sale.
How do I remove an equitable mortgage?
Get the Equitable Mortgage Cancelled at the Sub Registrar’s Office. Contact your bank and arrange to cancel the bank’s charge over the property at the Sub Registrar’s office. The bank official will have to approach the Sub Registrar and register the cancellation of the equitable mortgage.