EQM V/s Register Mortgage

Shivom Jindal (Querist) 25 November 2009 This query is : Resolved
Hello members, i need some information regarding EQM and RM. When any of these is required by bank while granting a loan. What are the documents to be looked at for confirming that all the legal requirements have been complied with.

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Y V Vishweshwar Rao (Expert) 25 November 2009
1- Deposit of Title Deeds with Crediotr with an intention ot create Security for due amoun - is Called as Equitabel Mortgage - Sec 58 ( F) of Transfer of proerty Act -Memorandum of Equitabelk Mortgage to be Registered with 0-5 % on loan amount

2- Regd Mortgage - Creation of Mortgage by executing and Registration of the Mortgage Deed in favour of the Creditor- 3% Stamp duty on loan amount

3- Accordign to the Loan limits/ loan Amounts Bank will insist for Mortgages / Security - ( i.e;- for more than Rs;- 50,000-00 Loan)

4- Before accepting mortgage ( Equitabel Mortgage- or - Regd Mortgage the Bank will obtain Title Clearence Report/opinion form their panel Advocate !