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Notarized agreement document is valid for Mortgage deed


16-Mar-2023 (In Property Law)
Hi, Notarized agreement document between buyer and building developer (flats) is valid for Mortgage purpose.Still building is under construction and property is not registered on buyer name. I want to know Notarized agreement document (between developer and buyer) is valid for mortgage deed purpose between buyer and third party. Please let me know. Regards Sheshadri P
Answers (2)

Answer #1
861 votes
To create a mortgage you will require title deeds. You cannot create a mortgage on a property that is not registered in your name. Thus a simple buyer's agreement signed with the builder cannot be used to mortgage the property as the title deeds to the property do not yet exist in hour name. However under certain conditions Banks may use such agreements to give you loans but in those cases the builders have an agreement with the banks in order to facilitate buying.

Answer #2
896 votes
Yes, every document which is notarized shall be considered valid for any agreement you enter with any builder or buyer or any deed such as mortgage deed, sale deed etc. If the property is not registered and a dispute arises between you and third party, then you will not be able to prove that property belongs. It is advisable to get the property registered.

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