Chapter XI: Creation of Equitable Mortgage

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By Advocate S. R. Agarwal

These days finance, particularly against housing and property, is being made available by the banks and the housing finance companies against the security of the properties by way of equitable mortgage, known in our Indian legal system as the “Mortgage by Deposit of Title Deeds”.

In terms of Section 58 (e) of the Transfer of Property Act, such a mortgage is created the moment title deeds of the property are handed over to the lender with the intention to create security for a loan in the Presidency towns of Bombay, Calcutta and Madras and the towns notified by the State Governments.

In most of the States in our Country, important towns and the District Head Quarters have been notified for the purpose of creation of equitable mortgage. In some States, even the Tehsil / Taluka Head Quarter has been notified.

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