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Property papers to be submitted as gurantee against private loan
07-Jan-2023 (In Property Law)
I am giving someone a loan in cash and some amount in white. As a security/gurantee, they are submitting their house papers. Is there any other legal formalities that need to be done, to make sure I got my money back on time. Do i need to get him sign something on a stamp paper , to be on a safer side.
Hi,
You need to get the documentation done from an expert lawyer to safeguard your money tendered as loan. Keeping the papers wont work. Needs to get a mortgage deed executed alongwith other security documents.
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Adv. Anubhav Kathuria
Delhi | 1000+ Answers
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it's always preferred as a matter of practise that if you are advancing a heavy loan amout that you get the the same in writing with repayment guarantee in the form of a cheque accompanied by an undertaking with penal and compensation clause in case of failure to repay. if the same in on a stamp paper of rs. 100, and the same is notarised there is a good chance of enforcing the same in court. then if the amount is not repaid you may also consider initiating criminal proceedings, apart from cheque bounce case under section 138 NI Act.
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Adv. Kawaljit Singh Bhatia
Delhi | 25+ Answers
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First of all, a careful due diligence of title documents needs to be done in this case. since, you are entering into equitable mortgage of property in question, you need to make one mortgage deed alongside promissory note and post dated cheques to secure your lending. a lot other things can also be done to secure funding.
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Adv. Rajinder Pal Singh
Delhi | 200+ Answers
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