Lending of money on land

Rajeswariii (Querist) 09 June 2016 This query is : Resolved
Sir, a friend of mine is in need of money. He asked me to lend him money. He said that he will mortgage his land in my name and at the time of returning my money, I have to give him his land by reverse mortgage. Please tell me is it possible??

Follow Query

Report Abuse

Sudhir Kumar, Advocate (Expert) 09 June 2016
There is going to be no scope to return land because such loans are nevert taken to be refundedu

r.sathyanarayanan (Expert) 10 June 2016
Madam,
You check the title of the land and ensure that whether your friend is having right to mortage.,with the help of a local advocate.if it is perfect you ask your friend to deposit the original documents and also to execute a duly registered document ( DTD) in your favour.hv the assistance of a lawyer for this too.

Rajendra K Goyal (Expert) 10 June 2016
You can proceed for mortgage if title is clear.

If your city is notified for equitable mortgage, your friend can deliver title of the properties and later confirm by registered post that he has delivered title deed for equitable mortgage purpose for security of loan of Rs---. No need of signatures of mortgaging person at the time of delivery of title documents (it would attract stamp fee), but two witness must confirm the fact on paper. It can save stamp fee.

If not possible, proceed with registered mortgage.