anand das (service) 09 January 2010

equitable mortgage

what is equitable mortgage?

what is relation between equitable mortgage and common mortgage?

equitable mortgage needs to be compulsarily registered?

thanks.

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2 Replies

Parveen Kr. Aggarwal (Advocate) 09 January 2010

Equitable mortgage is mortgage by deposit of title deeds and is defined in section 58(f) of the Transfer of Property Act, 1882.

Equitable mortgage is not compulsorily registrable.

^{Simple mortgage is defined under section 58(a) as "Where, without delivering possession of the mortgaged property, the mortgagor binds himself personally to pay the mortgage-money, and agrees, expressly or impliedly, that, in the event of his failing to pay according to his contract, the mortgagee shall have a right to cause the mortgaged property to be sold and the proceeds of sale to be applied, so far as may be necessary, in payment of the mortgage-money, the transaction is called a simple mortgage and the mortgagee a simple mortgagee."}

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nishad (Asst.Manager Legal) 16 February 2010

EM need not be registered..it can be created by depositing the primary title deeds with bank.However adequate stamp duty need to be paid for the letter confirming deposit of title deeds...stamp duty depends upon state..

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