LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

GOVIND SINGH   05 October 2023

Equitable mortgage by legal heir

customer applied for housing loan in our bank, title deed of property is in the name of her deceased husband but propert is tranferred to her name in the revenue records. Can we create equitable mortgage with that title deed?


 5 Replies

Dr. J C Vashista (Advocate )     05 October 2023

Yes, mortgage can be created on the basis of title documents, which is stated to have been transferred in the name of borrower (widow).

1 Like

Real Soul.... (LEGAL)     05 October 2023

If the property is transferred in her name and otherwise also being the legal heir to property you can mortigage that against loan. 

1 Like

GOVIND SINGH   06 October 2023

Title deed is in the name of deceased but property is tranferred in the name of the borrower (widow) in the revenue records. Can we create equitable mortgage? As per our panel lawyer equitable mortgage is possible.

T. Kalaiselvan, Advocate (Advocate)     07 October 2023

One of the most common types of equitable mortgage fraud is the creation of fictitious property. In this scenario, the borrower provides false information about the property and creates fake documents to show ownership.

There is no legal binding in an equitable agreement. Both parties are only bound by the agreement and nothing else, hence the risk is also higher.

Now you can decide whether to go for an equitable mortgage or a registered mortgage

1 Like

Dr. J C Vashista (Advocate )     07 October 2023

Because equitable mortgage is created merely by a deposit of title deeds with the lender. There is no need for a written instrument for creating such a mortgage. As there is no written instrument, no registration of such mortgage is required under the Registration Act, 1908.

While non-registration of this kind of mortgage makes it easy to create, it also opens opportunities for fraud by unscrupulous borrowers.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register