Mortgage papers and types is important knowledge for credit officer in bank and financial institution. Firstly we will discuss what is mortgage “A mortgage is a mode of creation of charges on the immovable assets for securing the investment facility” According to Section 58 (a) of the Transfer of Property Act-1882, “
A mortgage is the transfer of an interest in specific immovable property for the purpose of securing the payments of money advanced by way of investment/loan, an existing or future debt or the performance of an engagement which may give rise to a pecuniary (financial) liability.
The transferor is called a mortgagor, the transferee a mortgagee. The principal money and the interest of which payment is secured for the time being are called the mortgage money and the instruments (if any) by which the transfer is effected is called a mortgage deed” The immovable property includes land, building, tree etc. normally which are not detachable from the land.
Mortgage papers and types
i) Simple mortgage or Registered mortgage: Where without delivering possession of the mortgaged property the mortgagor binds himself personally to pay the mortgage money and agrees, expressly or impliedly on proper valued non-judicial stamp giving necessary Govt fees when any mortgage deed is registered to the respective area Sub-Registrar Office is called Registered mortgage. That, in the event of his failing to pay according to his contract, the mortgagee shall have a right to cause the mortgaged property to be sold and proceeds of sale to be applied, so far as may be necessary, in payment of the mortgage money, the transaction is called a simple mortgage (Section 58(b) of Transfer of Property Act).
ii) English mortgage: In this type of mortgage, the mortgagor binds himself to repay the mortgage money on a certain date and transfer the mortgaged property absolutely to the mortgagee on the condition that the mortgagee will transfer the same to the mortgagor upon payment of the mortgage money. The mortgagee under an English mortgage is entitled to takeover immediate possession of the mortgaged property and to retain possession until he is repaid.
iii) Usufructuary mortgage: When possession of the mortgaged property is being transferred along with onward output/income (which will be appropriated towards the mortgage money or profit/interest) to the mortgagee is called Usufructuary mortgage.
iv) Equitable mortgage or Mortgage by Deposit of Title deeds: Where a debtor delivers to the creditor documents of title to immovable property with intent to create a security thereon – the transaction is called Equitable mortgage or Mortgage by deposit of title deeds.
v) Conditional mortgage or Mortgage by Conditional Sale: Under this form of mortgage, the mortgagor apparently sells the mortgaged property to the mortgagee on the condition(s) that (a) the sale become absolute if fails to pay money on certain date, (b) The sale shall become void if money repaid and (c) The conditional sale shall be reversed if mortgagor makes payment within due date.
vi) Token mortgage: Token mortgage is a Registered mortgage where only a token amount is registered by a deed securing/covering the token amount of investment/loan and the rest investment/loan amount is covered by executing an agreement to create further charge.
vii) Second mortgage: A person has already mortgaged his property for borrowing money to a Bank and wish to borrow more money from others against mortgage of the same property with prior consent of the 1st mortgagee, he can do by a second mortgage, if there is enough margin in the value of property by submitting photocopies of the documents, since the originals are with the first mortgagee. A second mortgage takes effect only after first mortgagee has been satisfied.
As per existing law of the country we exercise simple Registered mortgage and sometimes Second mortgage for the investment of our Bank.
A mortgage is a loan from a bank or other financial institution that helps a borrower purchase a home. The collateral for the mortgage is the home itself. That means if the borrower doesn’t make monthly payments to the lender and defaults on the loan, the lender can sell the home and recoup its money.
Mortgage papers and types to landed property to be obtained from an investment client :
- Original title deed (or Certified copy of deed alon gwith Registration receipt duly discharged, in case of recent purchase).
- Baia deed(s) upto the last record.
- CS, SA & RS khatian
- Mutated parcha along with DCR and Maat parcha.
- Up-to-date rent receipt.
- Up-to-date Tax receipt
- Non-encumbrance certificate duly signed by the competent authority along with searching money receipt.
- Site plan, Approved plan Alon with the approval letter.
- Letter of Allotment, Lease deed, Rent receipt and No Objection Certificate (NOC) to mortgage of the property, in case of land owned by any authority.
- Valuation certificate
- Legal opinion issued by BLA.
- Registered mortgage deed
- Registered General Irrevocable Power of Attorney
- Certificate of satisfaction regarding documentation issued by the BLA.
- Application of the borrower in standard form along with three copies passport size photograph.
- Three copies passport size photo of the Guarantor if the investment/loan is secured by the landed property of third party.
How to mortgages work.
Regardless of the many terms, definitions, and variations, a mortgage is essentially an agreement between a bank and a borrower to lend money in exchange for a piece of property. By property, I mean residential real estate, such as a house, condo, townhouse, etc. It’s a fairly simple concept.
Mortgage period
Instead of buying a home with cash, which most of us can’t manage due to the outsized purchase price, you take out a mortgage with a bank and repay it over a long period of time, typically 30 years.
A mortgage loan is typically a long-term debt taken out for 30, 20 or 15 years. Over this time (known as the loan’s “term”), you’ll repay both the amount you borrowed as well as the interest charged for the loan. You’ll pay the mortgage back at regular intervals, usually in the form of a monthly payment, which typically consists of both principal and interest charges.
Conclusion
When a borrower repaid his full dues with bank and intend to get back all his property documents duly redemption of registered mortgage, in that case bank will execute a deed of redemption with the help of the BLA showing exact schedule of the redeem property and mortgage deed, Mortgage papers and types. The redemption deed will execute by the branch manager or his authorized officer at a cost of the borrower.
