There is a certain procedure for equitable mortgage. All of these procedures are mentioned below step by step:
Procedure for equitable mortgage
- The mortgagor or his agent should deposit the title deeds relating to the property with the bank at a notified place.
- The mortgagor is required to send a covering letter with the title deeds acknowledging the deposit of title deeds with the intention to create an equitable mortgage thereon to secure a specific debt or debt.
- The bank should accept documents only in the original. Usually, the bank gets a list of documents from the mortgagor which he has to deposit with the bank.
- An equitable mortgage register is maintained by every bank. An authorized official will make an entry in the register giving details such as date, time, etc., or the deposit, particulars of advance, and a complete list of documents.
- The mortgagor has to furnish periodically an encumbrance certificate declaring that no charge has been created against the mortgaged property subsequent to the date of the mortgage.
- Periodical tax receipts should be verified.
- In case the mortgagor happens to be a limited company, the mortgage must be registered within 21 days of the execution of the mortgage.
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A borrower deposited title deed/conveyance deed of free hold property in bank with intention to create EQUITABLE MORTGAGE. Bank created EM. The land of property allotted /purchased by owner from Haryana Urban Development Authority. Whether prior permission from Haryana Urban Development Authority is required to create Equitable Mortgage ? An Equitable Mortgage created by Bank without obtaining permission to create Equitable Mortgage from HUDA is valid or not.
Yes obviously bank need permission to create equitable mortgage even they need permission name change.
If HUDA permission is not obtained before creation of Equitable Mortgage and EM is created by Bank, whether it is enforceable in the eyes of law or not. What is effect not obtaining permission from HUDA property before creating EM.
Actually, i don’t know about HUDA, can you please explain to me what is HUDA?
not obtaining the noc from HUDA, it is merely a irregularity not effect the enforcement of security, however dues of HUDA has to cleared