What is equitable mortgage India?
Equitable Mortgage Meaning: Equitable mortgage is a type of mortgage where the terms of the agreement are made solely between the mortgagor and the mortgagee. There is no third party or government agency involved.
What are the charges of mortgage?
Mortgage Deed Fee: This is one of the major charges you will have to incur while opting for a home loan. It is generally a percent of the total home loan amount. In general, most institutions charge 0.5 per cent of the loan amount as an MOD charge.
Can an equitable mortgage be registered?
This is because, since equitable mortgages are not registered as encumbrances on the property, the buyer of that property might not be aware of the mortgage. As a result, the seller can sell the mortgaged property to the buyer without repaying the loan.
What is equitable mortgage charges in Maharashtra?
It will now be charged half a per cent or Rs 15,000. There are different types of mortgages; equitable mortgages and simple mortgages are the most used. Earlier, stamp duty was 0.2 per cent for equitable mortgages and 0.5 per cent for simple mortgages.
Is equitable mortgage a charge?
As the name suggest, equitable mortgage is created by the borrower in favour of the lender by deposit of title deed of immovable property as security to a lender until the loan is fully repaid. This creates a charge on the property, though no legal procedure is involved.
What is an equitable charge on a property?
An equitable charge refers to a security placed against a property – it is like a mortgage and may be enforced by a court order for sale. It does not grant ownership or possession to a creditor but does give the right to the judicial process for recovery of the loan amount in case of non-payment.
Is a mortgage a legal charge?
Almost always, a legal mortgage is created by the method referred to in the Law of Property Act 1925 as “a charge by deed expressed to be by way of legal mortgage”. This has led to legal mortgages over land also being called legal charges, even though technically, charges and mortgages are different legal concepts.
What is a mortgage charge on property?
It is a legal document signed by the borrower which is registered against the property at the Land Registry to alert any potential buyer of the existence of the debt. This would usually mean the property cannot be transferred into your sole name and so you would need your former spouse to remain on the mortgage.
What is equitable mortgage charges?
In an equitable mortgage, the owner has to transfer his title deed to the lender, thereby creating a charge on the property. The owner also orally confirms the intent of creating a charge on the property. An equitable mortgage is also known as an implied or constructive mortgage.
How equitable mortgage is created?
As the name suggest, equitable mortgage is created by borrower in favour of the lender by deposit of title deed of immovable property as security to a lender until the loan is fully repaid. The borrower takes money from the lender and keeps his/her property as a security against the loan amount taken.
How do I find out if a property is mortgaged?
You can check if property is mortgaged in India via Central Registry of Securitisation Asset Reconstruction and Security Interest of India. CERSAI is a department under the Ministry of Finance.
Is there stamp duty on home loan?
Home loan amount sanctioned by bank is generally excluding stamp duty and registration charges. You need to pay these charges additionally in order to obtain the ownership of your new house.