Ramdas Sunthwal (--) 01 December 2009

Equitable Mortgage

This has reference to the Equitable Mortgage. As per definition in TP Act, Where a person in any of the following towns, namely, the towns of Calcutta, Madras and Bombay in any other town which the State Government concerned may, by notification in the official Gazette specify in this behalf, delivers to a creditor or his agent documents of title to immovalbe property, with intent to creat a security thereon, the transaction is called a mortgage by deposit of title deeds.

Can a person who is not of the above town do the mortgage?

Where is should be registered ?

Can it be registered at the third place? If the parties wishes to register the mortgage of Maharashtra properties in Delhi ?

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4 Replies

Anish goyal (Advocate) 01 December 2009

No registration required in these towns if mortgage is by deposite of sale deed.

S. Bharath (Advocate and Arbitrator Formerly Civil Judge) 01 December 2009

Mr. Anish Goyal is right, the Letter of Memorandum evidencing Deposit of Title Deeds is not compulsorily registrable. Regarding the other queries: documents pertaining to properties situated even outside these notified towns can be deposited in these towns and a person who is not a resident of these towns can deposit the deeds. The actual depositing shall take place in the town. As a practical illustration, I would mention the practice of banks which extend loan facilities through their branches situated outside the city, request the borrowers to deposit the documents with a city branch of the same bank, even though the properties as well as the borrower [mortgagor] may be outside the city. Hope this helps you..