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Procedure for mortgage registration without possession


17-Feb-2023 (In Property Law)

Hi, I am lending money to some one and in return the other party is doing mortgage registration on their property(Agriculture land + Guest House in it) for security. I have following questions. 1 .What is the legal process for possession if conditions not met by other party? 2. How long does that process takes in best/worst case scenario? 3. What kind of protection I have with this registration? 4 .What wording I should put in registration documents for A. Possession of property if other party didn't clear with in time mentioned. B. Didn't paid interest in agreed intervals 5. What is the meaning of mortgage without possession?

Answers (2)

Answer #1
986 votes
Hi, suggest to go for registered mortgage deed for both agricultural land and guest house. Also take a special irrevocable power of attorney (registered) after registration of mortgage. So typically you should have the following. a) loan agreement duly stamped. b) promissory note. if documentation is proper you can recover your money within 1 year. c) registered mortgage deed and d) special power of attorney. Also ensure that loan is disbursed through cheque and post dated Interest cheques for entire duration of loan and principal amount cheque. Get three to four reliable witnesses.if documentation is proper you will recover your money within 1 year in case of default by borrower.
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Answer #2
584 votes
here while u are lending money to someone u need to give it through cheque or dd. dont pay by cash. wether the person who is borrowing money is known person or stranger .what is the amount u are going to lend should be mentioned along with interest rate but should not exceed 18% P .A. while u are putting it in document. wether the land belong to single person or they have any share holders like brothers ,sisters . if yes then u better take their concern beefore lending money so that if he fails to repay than there should be no claim from others while u proceed towards possession. registered documents have legal value once give me complete details and i will let u know what more should be done
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