Mortgage, By Deposit Of Title Deeds

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This Project has been submitted by KUNAL KANT ID No: 214095 Mortgage by Deposit of Title Deeds Subject: Property Law During the (Winter Semester) 2014-15 Introduction In Transfer of Property Act under section 58 (a) Mortgage is defined as “A Mortgage is the exchange of an enthusiasm for particular immoveable property with the end goal of securing the instalment of cash progressed or to be progressed by method for credit, a current or future obligation, or the execution of an engagement which may offer climb to a financial risk One who transfer is called a mortgagor, and the one who receive is called a mortgagee; the sum or the principle amount and its interest for a certain time is referred to the mortgage-money to principal…show more content…
It can mortgaged by mere deposit of tittle deeds. The essentials of a Mortgage by Deposit of Title Deeds are:- 1. There must be a debt in a mortgage. 2. The delivery must be done by the debtor or an agent of his to the creditor or an agent of his. 3. The place of the delivery must take place in the towns mentioned in the Act. (Calcutta, Bombay, Madras or any other town specified by the State Government by a notification) 4. There should be expressed intention shown in the delivery to create a legal security against a debt. We shall discuss each essentials in detail:- Debt The debt need not to be a current one it can also be could be a future one. The mortgagor is not stopped to transfer the deeds to secure future advances without debt even if the debt is so essential. At the point when each advance is made, it turns into a charge on the immovable property whose deeds have been kept with the mortgagee. Under English law, there is a difference between a debt made before the deposit of the title deeds and the debt incurred after the deposit of title deeds but Supreme Court has lead down that it is just a guideline and may differ from cases to cases. Deposition of Title Deeds Under English law, there is no need to submit all the deeds, if the deeds which are deposited are related to the property or are material evidence of tit has been generally held that it would be sufficient if deeds which are deposited relate to the property or are material evidences of

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