Can a mortgaged property be registered?

Once the terms and conditions are negotiated and finalized, the prospective seller needs to obtain no objection certificate from the bank stating that the bank has no objection in the sale of the mortgaged property and the housing loan shall be transferred in the name of the prospective buyer once the transaction is …

Who is the legal owner of a mortgaged property?

The individual who mortgages his property against the loan is called “Mortgagor/Borrower.” While the individual/institution to whom the property is mortgaged is called “Mortgagee/Lender”.

Does mortgage mean ownership?

A mortgage loan does not represent ownership. Rather, a mortgage is simply a promise to pay back a certain sum of money to the bank. That promise is then “secured” by an asset, typically the home that you used the loan proceeds to buy.

What if I am on the mortgage but not the deed?

However, mortgage borrowers that are not on the title deed become guarantors, not co-borrowers. Since they do not have a legal interest in the real estate, they cannot execute a mortgage, pledging the property as collateral for the loan.

Is mortgage registration mandatory?

In the case of mortgage by deposit of title-deeds the immovable property is handed to the creditor by the borrower and documents stands as security. Since mortgage by deposit of title-deeds does not require registration, no payment towards registration fee and stamp duty is necessary.

What is registered mortgage?

In simple terms, a registered mortgage is a category of loan where the borrower voluntarily gives the bank full rights to the property in case of loan default. In such a scenario, you as a borrower have allowed the bank to dispose of the property which you can default the loan if you want.

In which mortgage registration is not compulsory?

However, mortgages created by depositing title deeds (also known as the equitable mortgage) are not compulsorily registrable. Under the provisions of Section 54 of the Transfer of Property Act 1882, the sale of immovable property, the value of which is Rs 100 or more, should be registered.