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M. Kannan (Consultant)     18 June 2011

Encumbrance for deposit of title deed

My friend has GPA registered property in karnataka. It is a vacant site. By depositing the GPA document with his friend, he has taken loan. If the loan document is registered in Sub registrar office, will it appear in the Encumbrance certificate.


 4 Replies

pratik (self working)     18 June 2011




narendra.s.p (Chief Manager(Law))     01 July 2011

GPA is only a document creating agency. It is not a title deed of the property. Only title deed or documents of title to the property should be deposited with the creditor as security for availing loan to fall within the meaning of equitable mortgage under setion 58(f) of Transfer of Propery Act. Mortgage deed or memorandum of equitable mortgage can be regisered with the jurisdictional Sub-Registrar, by paying stamp duty and registration charges. After such registration, an entry in the encumbrance certificate (EC) will be appearing regarding the mortgage. That is; parties to the mortgage, date of mortgage, amount and document No. It amounts to public notice of the charge of the creditor on the immoveable property.

Raghav Sood (Lawyer)     11 July 2011

Sh. narendra.s.p is flawlessly correct 

No encumbrance certificate can be granted on GPA, registered unregistered makes no relvence 

GPA is only a document of conveince it does not create title,


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