What Are The Formalities For Creation Of Mortgage?

What are the formalities for creation of mortgage?

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Posted by: Abhishek Singla

Posted on: 2018-09-19

Section 59 of the Transfer of Property Act deals with the formalities to be complied with for the creation of mortgage. If the principal money secured is more than a hundred rupees, a mortgage can be effected only by a registered instrument signed by the mortgager and attested by atleast two witnesses. In the case of mortgage by deposit of title deeds, even though the principal money secured is more than a hundred rupees, a registered instrument is essential. In order to effect a mortgage by deposit of title deeds, the mortgager should deposit the title deeds with the mortgage. If the principal money secured is less than a hundred rupees, a mortgage maybe created either by a registered instrument or by delivery of possession of the property.

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