Provisions have been made regarding mortgage transactions in Section 58 of Transfer of Property Act, 1882. Clause (f) in it contains provisions for loan / debt transactions by way of Deposit of Title Deed. Accordingly, person taking loan can secure the loan amount by way depositing title deeds of concerned property with the person giving loan. This activity can be done only in cities Notified by State Government vide a notification. This mode is called as Equitable Mortgage.

The essential elements of an Mortgage Deed include:

• Description of the property: Clearly identify the property being mortgaged, including its location, boundaries, and title details.
• Parties' details: Include the names, addresses, and signatures of the mortgagor (borrower) and mortgagee (lender).
• Loan details: Specify the loan amount, interest rate, repayment terms, and any other conditions.
• Mortgage terms and conditions: Outline the rights and obligations of both parties, including default and foreclosure provisions.
• Mortgagor's covenant: The mortgagor's promise to repay the loan and perform other obligations.
• Mortgagee's rights: The mortgagee's rights to the property in case of default, including foreclosure and sale.
• Default and foreclosure provisions: Specify the events that constitute default and the procedures for foreclosure.
• Redemption clause: Allow the mortgagor to redeem the property by paying off the loan.
• Covenants and warranties: Include promises and guarantees made by the mortgagor regarding the property and loan./li>
• Signatures and witnesses:Obtain signatures from both parties and witnesses, as required.
• Date of execution:Specify the date the Mortgage Deed is executed.
• Registration requirements:Comply with registration requirements, if applicable
• Stamp Duty:Payment of required stamp duty, as per local laws.

A Mortgage Deed is required for several reasons:

• Security for the loan: Provides security for the lender, allowing them to foreclose and sell the property if the borrower defaults.
• Evidence of the mortgage: Serves as evidence of the mortgage agreement and the parties' rights and obligations.
• Notice to third parties: Provides public notice of the mortgage, warning third parties of the lender's interest in the property.
• Foundation for foreclosure proceedings: Establishes the basis for foreclosure proceedings if the borrower defaults.
• Protection of lender's right: Protects the lender's rights and interests in the property.
• Clarifies ownership and title: Clarifies the ownership and title of the property, including any encumbrances.
• Compliance with laws and regulations: Complies with relevant laws and regulations, such as registration and stamp duty requirements.
• Prevents disputes: Prevents disputes between the parties by clearly outlining their rights and obligations.
• Enforceability: Makes the mortgage agreement enforceable in court.
• Transparency and accountability:Provides transparency and accountability in the mortgage transaction.

Yes, registration of a Mortgage Deed is mandatory in Maharashtra, India. According to the Registration Act, 1908, and the Maharashtra Registration Rules, 1961, all Mortgage Deeds relating to immovable properties must be registered with the Sub-Registrar's office.

Yes, stamp duty is payable on a Mortgage Deed in Maharashtra. The stamp duty rates vary depending on the type of mortgage, property value, and loan amount.

There are Three charges in deed. (Defend on property location)

1) Stamp Duty -

Stamp Duty is decided by sale value or market value of property whichever is higher. Stamp Duty is some per percentage of sale value or market value whichever is higher.

As per Article 65 of the Maharashtra Stamp Act:

MORTGAGE DEED, not being an agreement relating to 4[Deposit of Title Deeds) Pawn or Pleadge or Hypothecation (Article 6)], Bottomry Bond (Article 14), Mortgage of a Crop (Article 41), Respondentia Bond (Article 53), or Security Bond or Mortgage Deed (Article 54)—

when possession of the property or any part of the property comprised in such deed is given by the mortgagor or agreed to be given	The same duty as is leviable on a conveyance under clauses (a), (b) 5[or (c)], as the case may be, of Article 25, for the amount secured by such deed.
6(b) when possession is not given or agreed to be given as aforesaid.
	[0.1 per cent: of] the amount secured by such deed, subject to the minimum of one hundred rupees.
	0.3 per cent: of the amount secured by such deed, subject to the maximum of 7[twenty lakh rupees];
	0.3 per cent: of the amount secured by such deed, subject to the maximum of 7[twenty lakh rupees];
	8[Provided that, in case of instrument executed in favour of consortium of banks, the duty chargeable shall not exceed fifty lakh rupees.]
[Explanation I —A mortgagor who gives to the mortgagee a power of attorney to collect rents, or a lease of the property mortgaged or part thereof, is deemed to give possession within the meaning of this article.
Explanation II—Where in the case of an agreement to mortgage the amount or part thereof sought to be secured by such an agreement is advanced or disbursed to the mortgage or without execution of a mortgage deed, then such an agreement to mortgage shall, notwithstanding anything contained in clause (d) of section 2, become chargeable under this Article as mortgage- deed on the date of making of such advance or disbursement either in part or in whole].
(c ) When a collateral or auxiliary or additional or substituted security, or by way of further assurance for the above- mentioned purpose where the principal or primary security is duly stamped.	1(Five hundred rupees.]
Exemptions – (1) Instruments executed by persons taking advances under the Land Improvement Loans Act, 1883 (XIX of 1883), or the Agriculturists Loans Act, 1884 (XII of 1884), or by their sureties as security for the repayments of such advances. (2), Letter of hypothecation accompanying a bill of exchange.
2[Explanation. — For the purpose of this clause, the principal or primary security” shall mean, the security created under clause (a) or (b) above.]

2) Registration Fees -

Registration fees is also a variable of Loan value upto certain limit then it is fix for all value above certain limit.
Note: registration value if 0.3% of sale value or 15,000/- whichever if higher.

3) Document Handling Charges (DHC) Fees -

online through collected Sub Registrar office for document handling, for every page of the document, a fee of Rs. 20/- is applicable.

Yes, a Mortgage Deed can be cancelled under certain circumstances:

1. Redemption: The mortgagor (borrower) pays off the loan, and the mortgagee (lender) agrees to cancel the mortgage.
2. Release: The mortgagee releases the mortgage voluntarily.
3. Foreclosure: The mortgagee forecloses on the property, and the mortgage is cancelled after the sale of the property.
4. Satisfaction:The mortgagee acknowledges in writing that the loan has been fully repaid, and the mortgage is cancelled.
5. Court order: A court orders the cancellation of the mortgage due to a dispute or legal issue.
6. Mutual agreement: Both parties agree to cancel the mortgage, usually through a Deed of Cancellation or Release.

To cancel a Mortgage Deed, the following steps are typically taken:

1. Obtain a No-Objection Certificate (NOC) from the mortgagee.
2. Execute a Deed of Cancellation or Release.
3. Execute a Deed of Cancellation or Release.
4. Execute a Deed of Cancellation or Release.

The borrower keeps the original copy of Mortgage Deed.

Typically registered within 4-7 working days

The process involves:

1. Loan Sanction Letter
2. Bank Letter/Authority Letter
3. Prepare the agreement document
4. Signing by both parties
5. Pay stamp duty (as applicable)
6. Submit the document to the Sub-Registrar's office
7. Sign in the presence of the Sub-Registrar
8. Receive the registered document

Shivay Services provides the best services to make a sale deed. All you have to do is provide your contact number and information, consult with our expert ,provide relevant documents and get it done.

A title search is a search which gives answer to the question if the owner is really a legal owner of the property and if there are any outstanding claims on the property. This can be done by going through records of property at sub registrar’s office.

If a property has encumbrance on it like mortgage deed or other claim on property then it is known as title defect.

When a property is sold and ownership passes from one owner to other on more than one occasion then title of the property creates a chain of ownership which is called chain of title.

An encumbrance is a thing which creates difficulty in transfer of property from one owner to other for example outstanding mortgages, liens on real estate, unpaid property taxes etc.

Sub registrar’s offices are divided according to regions and specific jurisdiction is allotted to specific office to handle property registrations in that area.

Chain of Documents:

Any buyer should check for all the chain of documents before buying a property. Chain of documents are the documents which specify when and how the property has been transferred from one owner to other.
Preparation of Deed:
A draft of the deed(Sale Deed, Lease Deed, Correction Deed etc.) that needs to be executed must be prepared on which the details of all the parties involved and the property involved along with terms and conditions must be mentioned clearly before registering the deed.

Stamp duty calculation:
Stamp duty is the fees charged by the government and it varies from state to state. Stamp duty is calculated on the basis of market value of the property involved.

Govt. Payment:
The registration fee and stamp Duty, DHC charges must be paid before the time of registration.

Signing of Mortgage Deed:
Both the parties and the recipient must sign the mortgage deed in the presence of two witnesses.

Registration of Mortgage Deed
The deed must be registered with the Sub-Registrar of Assurances within four months from the date of execution.