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Vikas Kumar (Senior Manager)     20 March 2014

Who can create an equitable mortgage

A sale deed of a landed property has been executed in favor of A & B with a mention that the share of both parties is 1/2 of the total land, but it is not clear from the deed that which half belongs to A and which half belongs to B. After some time B executes a part of his share to A in which the boundaries are mentioned and by combining both deeds the exact portion of both the parties become clear in the original deed. Now A wants to mortgage his entire portion of land by way of deposit of title deed as security to obtain loan from a bank. A is in the possession of both the deeds. Does A has the right to create an equitable mortgage by executing the documents of mortgage alone and depositing both the title deeds.



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 2 Replies

Ajit Singh Cheema (practising Advocate)     21 March 2014

Yes , A can equitably mortgage the property standing in his name , of course the bank will ask for clearcut demarcation of the property.He will have to deposit both the title deeds with an intention to create security in favour of the bank.

T. Kalaiselvan, Advocate (Advocate)     23 March 2014

If A and B are jointly holding the land, the B has given away his share,then A becomes the owner of the both the shares, so A can very mortgage the property as an individual owner of both the properties.


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