Upgrad LLM

how to know whether a property is mortgaged


Sirs,

Kindly guide me how to know whether a property is in mortgage or under any loan pendings etc ?

Likewise Encumberence certificate which clears ownership issues of the property ,any cetificate is there for detailing the mortgage/under loan security details of the property?

Forum kindly help me. 

 

 
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Law Officer

Dear Arivarasu

It is the EC which you show you, whether a property is mortgated or not ? But some times even if properties are mortgaged by some financial institutions through a mortgage agreement/deed, they do not communicat it to the nearest SRO, for which it doesn't appear in the EC.

So it is advisable, if you are suppose to do a big deal, better to get a no dues certificate from the local financial institution in respect of the proposed proerty/person.

You may also take help of the local lawyer in this regard.

 
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Dear Arivarasu,

There are two types of mortgage. One registered mortgage and another is mortgage by deposit of title deeds. All registered mortgages are registered with the Sub registrar under Indian registration act and one can find out the same by taking searches of Index II or obtaining EC.

Since the mortgage by deposit of title deed is not registered and the owner keeps the original with the lender. Therefore ones should ask for the original title documents before entrieng upon the transaction followed by an affidavit.

 

 
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i agree with Mr. Kulkarni.

 
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Executive

I think by inviting objections for whatsever claim will settle the issue.

 
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hello,

As mentioned by Mr. Kulkarni - "mortgage by deposit of title deed is not registered and the owner keeps the original with the lender. Therefore ones should ask for the original title documents before entrieng upon the transaction followed by an affidavit."

What happens if the Title Sale Deed is lost? A certified true copy / indemnity bond / FIR / newspaper advertisement - all has been done - but still how do I find out whether the property is mortgaged or not?

 
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