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R.Ranganathan (Advocate)     01 March 2013


Mortgaged property - Memorandum of Title Deeds executed in favour of one Bank/Mortgagee by Mortgagor. Now wants to transfer the loan in favour of another Bank/Mortgagee. Is it compulsory/necessary to discharge the original mortgage by executing a Receipt Deed or can the Registrar have some other mode of getting the name of new Bank/Mortgagee to be reflected in the EC by some acknowledgement deed etc., 


 3 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     03 March 2013

after discharge the loan or repay the loan and a receipt/re-conveyance deed be regited in SRO  to reflect the same in EC. 

R.Ranganathan (Advocate)     04 March 2013

My query is if another bank wants to take over the loan what will be required to be done: 

1) To discharge the earlier MOTD though the loan is only a takeover by a different bank

2) To assign the existing MOTD in favour of the new Bank.

If the first answer is to be taken as correct then the Mortgagor will be forced to incur additional expenses even though he has not cleared the loan and there is only a takeover of loan.

So I would like someone who is in the knowhow of these types of transactions to clarify.

Kawmini Liyanage   19 December 2021


The Transfer of Property Act 1882 states “A mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability”.

Switching, balance transfer or simply transfer refers to a loan being taken over by another lender by paying off the old lender in full, after which the borrower will start paying the equated monthly instalments (EMIs) to the new lender. Therefore, the Memorandum of Title Deed between Mortgagor and first mortgagee has to be canceled and entered into a fresh terms with the second mortgagee. And legal fees in similar manner to previous has to be taken care of. 


Kawmini Liyanage. 



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