A Premium Guide to Editing The Letter Of Confirmation For Creation Of Mortgage By Deposit Of Title-Deeds
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PDF Editor FAQ
What are the consequences if notice of intimation regarding mortgage by way of deposit of title deed process is not completed within 30 days from loan?
Equitable mortgage is an oral transaction and no document is obtained on the date of mortgage as it will attract stamp duty commensurate with loan amount. However letter of confirmation is usually done after 24 hours of creation of mortgage. It is an additional precaution. Even if the confirmation letter is not given the mortgage will stand the test of law as there is a narration in the equitable mortgage register having created the mortgage signed by a Bank officer and an witness.
What document should be deposited with bank for equitable mortgage?
Equitable mortgage is an oral transaction where the title deed is deposited. Bank officers enter details in a register. One day after confirmation of deposit the borrower gives a confirmation letter that he deposited the title deed for the purpose of seeking an advance from the Bank. In certain states like Maharashtra and Tamil Nadu it is registered with District Sub-Registrar, while in most states of India registration is not required. Before creation of mortgage banks seek legal opinion on ownership and right of sale. They also obtain 13 years search certificate from the District Sub-Registrar that the property was not bought and sold during the 13 years period.
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