In English law, this is called a fair mortgage. When a debtor transfers ownership of immovable property to a creditor or its agent in order to create a security right in it, the transaction is called a title deed mortgage. This type of mortgage is only available in Mumbai, Chennai and Kolkata. If you are buying a property for the first time or plan to buy it in the near future, you need to understand all the contracts you are making, even if you are not a lawyer. Because at the end of the day, you are the one who suffers all the consequences. I want everyone to know about the mortgage deed and its essentials. I have also highlighted some necessary clauses that must be respected when signing a mortgage deed. The Transfer of Ownership Act deals with the mortgage of real estate in India. A real estate mortgage is the transfer of an interest in a particular property to secure the payment of cash advances in the form of a loan, existing or future debt, or the realization of a risk that may give rise to financial liability. Existing debts mean obligations that are not time-barred. Future debt is debt that arises after the mortgage. It is not essential to cover the debt before the transaction; It could be carried out to secure the advanced money payment in the future. In many countries, mortgage lending is the most important instrument for financing private ownership of residential and commercial real estate.

A mortgage deed creates a flood of rights and obligations for the parties involved (mortgagees and mortgagees). These rights and obligations are recognized and included by TPA. It helps secure a debt owed to the mortgage debtor, while the mortgagee can always recover property if the money owed is repaid to the mortgagee. The doctrine of priority is based on the principle « quite prior est tempore potiorest jure ». This means that the first triumphs over the second in time. If the mortgagee transfers real estate to more than one mortgage holder, the subsequent mortgagee will only be paid if the previous mortgagee is satisfied. Under section 78 of the Transfer of Ownership Act 1882, the subsequent hypothec takes precedence over the previous hypothec if a previous hypothec results from fraud, deception or gross negligence. This article was written by Neha Mallik, who is studying at the Vivekananda Institute of Vocational Studies, affiliated with Guru Gobind Singh Indrapratha University.

This article gives an understanding of the mortgage deed and its essential elements. It also highlights the important clauses to be respected as a party to the mortgage deed. It must be a property expressly mentioned in the deed. It must be described fairly so that it can be determined what property it is. [27] Mortgage Indemnification/625238/Real Estate and Mortgage Justification A mortgage is always the transfer of an interest in a particular property. Ownership of ownership is transferred. The intention of the parties is an important element in determining the nature of the transaction, and evidence must be provided to the court if the claim contradicts the written terms of the deed in dispute. This was emphasized in Pandit Chunchun Jha v. Sheikh Ebadat [1954 AIR 345].

This clause highlights the type of mortgage agreed by the parties. This is the most important clause of the mortgage deed, since all the rights and obligations of both parties depend on the type of mortgage with which the property is pledged. For example, let us say that in the English mortgage, the mortgagee has the absolute right to sell the property. Although a simple mortgage of the property is not necessary. The clause also describes the duty of the mortgagee and the hypothecary debtor, for example: Repayment is once again the most important and fundamental right of the hypothecary debtor. This is an essential feature of the mortgage transaction. This is a legal right granted to the hypothecary debtor under section 60 of the Act. The clause sets the duration of the mortgage deed when the hypothecary debtor has the right to recover his property. The clause states that if the principal and interest are paid after the due date of repayment of the money, how the property is to be returned to the beneficial owner of the mortgaged property. Mortgages: In a real estate mortgage transaction, the mortgage debtor is the person who borrows the money, rather than creating a mortgage on the property to pay off the debt. We have to be very careful about the interest rates that the mortgage holder charges.

Sometimes it is a fixed interest rate, but sometimes prices can fluctuate, which is concerning. The fluctuating interest rate allows the mortgagee to change interest rates based on changes in prime rates. So, every time you sign a mortgage agreement, you need to carefully consider the interest rates in the agreement. The person who pledges his property in exchange for the loan is called a « mortgagee ». While the person to whom the property is pledged is called the « mortgagee » and the terms of the mortgage are included in the « mortgage deed ». An English mortgage occurs when a mortgage borrower undertakes to repay the loan on a specified date and transfer ownership absolutely to the mortgagee, provided that the mortgage holder transfers ownership to the mortgagee against payment of the loan amount as agreed. To prevent the future occurrence of such scams, it is necessary to understand the basic elements of a mortgage deed and the most common causes of such scams. Any mortgage which is not a simple hypothec or hypothec by conditional sale or mortgage of usufruct or English mortgage or a mortgage by deposit of title deeds may be an abnormal hypothec. [32] This law also ensures that monetary requirements are met in exchange for real property. It is the link between man and property.

However, if someone borrows money and agrees with the creditor that they will not sell the property until the bond is repaid, the transaction is not a mortgage. In this case, the person simply declares that they will not transfer their property until they repay the loan. Subsection 55(2) of the Act deals with certain relevant agreements or arrangements that the parties must enter into for the transfer of real property, such as leases, sales, mortgages, gifts, etc. The mortgage deed is a legal instrument or document that contains the terms of the mortgage. The deed gives the lender the interest and legal rights in the property. All rights and interests in the property that the borrower has pledged as security are legalized in the mortgage deed. In case of default or non-payment of the loan amount, the lender can assert its legal rights to the property. It is important to mention that the mortgage deed must be properly registered and stamped in order to have legal validity. In the case of a simple hypothec, if the deed is not signed, registered and authenticated by at least two witnesses, this is equivalent to having no contract at all. Certification and registration criteria depend on the type of mortgage. Some types of mortgages do not require registration and certification if the principal money is less than Rs 100.

[7] [11],being%20made%20the%20buyer%20shall The concept of mortgage is one of the fundamental concepts of the Transfer of Ownership Act of 1882, as it helps to protect the obligation of the mortgagee and also helps to recover the property once the mortgage borrower reimburses the amount owing. mortgagees. Therefore, a mortgage is called an explicit transfer of a real estate interest as security for a loan. The most important aspect of mortgages is that they transfer a legal interest in the property with a repayment clause stating that the transfer will become invalid or that the interest will be transferred again when the debt is repaid. Sir Edward introduced the concept of mortgage in the sixteenth century to resolve doubts about the payment of his debts by the mortgage debtor. [3] The term « mortgage » is derived from the French term, which means « promise of death ». [4] If the mortgagee does not pay his debt forever, the property is dead to him on the condition. When the mortgagee pays his debts, the pledged property or mortgage is dead to the mortgagee. You should carefully consider whether or not you should leave ownership of the property to the mortgagee.

Sometimes this clause creates legal problems if it is not read correctly, as this clause may have loopholes. The above clause specifies which title deeds are to be transferred to the mortgagee. If the clause stipulates that all title to the mortgaged property must be surrendered to the mortgagee, the mortgagee transfers all title documents to the mortgagee. [19] deed/#Essential_elements_of_Mortgage_Deed This clause lists all the documents required to validate the deed and identify the parties. For example: PAN card, Adhar card, passport, booklet, property documents, voter card, driver`s license.