Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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Punit Gupta (Owner)     06 July 2022

Can equitable mortgage be created?

Mrs V has ownership and possession on certain residential plot n house build on it. She had purchased the same from Mr K in Oct 2014, while Mr K had purchased the same plot in May 2014, from Mr A, B, C, D, E, F, G, H who jointly held the property. the chain of title is not tracable before these parties holding the land i.e. any chain beofre May 2014 is not traceable.
Question is: Can If Mrs V, current owner has revenue records in her name, go for an Equitable Mortgage of this property for a Home loan in any bank?

Views are welcome.



Learning

 6 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     06 July 2022

Bank officials/theri legal advisers must ask the previous documents.  So apply for the EC copy of previous documents in Sub Registrar office concerned.

Real Soul.... (LEGAL)     07 July 2022

how She purchased the property, she might be having sale deed , if there is no sale deed how can she prove her title. Sale deed is  valid document to prove her title. 

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     07 July 2022

In banks, the title of the property proposed to be mortgaged as security shall be traced for a minimum of 13 years prior to the proposed mortgage transaction. In the instant case, the title is traced up to 2014 only. And, in banks, this work is outsourced and  Panel Advocates handle the work of tracing the title and submitting a Legal Security Report with an up-to-date Encumbranch Certificate as per the credit policy of the bank concerned.

 

In the instant case, the title is traced up to 2014 only when K purchased the property from A to H in May 2014. It is to be examined based on what right or title deed persons A to H sold the property to K and when they (A to K) acquired the property.

 

Until the above gap in tracing the property is cleared satisfactorily, Equitable Mortgage cannot be put through. 

 

 

1 Like

SHIRISH PAWAR, 7738990900 (Advocate)     07 July 2022

Hello,

Yes, Banks generally ask for the title and search report for the last 30 years. In your case, you are not having a chain of documents before May 2014. So it seems difficult for banks to create equitable mortgages. However, it all depends on the bank's terms and conditions. There is no law for 30 years report. You may try some bank may give loan. 

Punit Gupta (Owner)     07 July 2022

She purchased the property through a conveyance deed i.e. Sale Deed.

Dr J C Vashista (Advocate)     09 July 2022

Title search for 13 years has to be done by the Banker before creating equitable mortgage.


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