Can purchaser obtain security of another land not mentioned in deed

780 votes

Hi
Yes.
The purchaser can obtain as a security of another land as long as it is for specific performance of contract (i.e the agreement of sale of different land).
However the same should be documented in the form of mortgage by deposit of title deeds in lieu of advance given for agreement of sale of another land.
If the value of advance is over and above 5lakhs, then it is suggested that the mortgage by deposit of title deeds be registered at the Sub-registrar office by paying appropriate stamp duty and registration fees.
Since unregistered agreement of sale and mortgage by deposit of title deeds are not generally recognized in court of law, it is recommended to get the mortgage by deposit of title deeds registered.

Advocate Rajagopalan LawRato