Registered vs equitable mortgage

Mortgage is a transfer of specific interest in the property owned by a person in favour of the creditor

Registered mortgage- Mortgage as per the Transfer of property act section 58(b) is registered mortgage, where the mortgagor registers the mortgage with a Sub Registrar.

In case of Simple/Registered Mortgage

•  Mortgage Deed is registered
• Stamp duty on deed and registration fees are required to paid
•  Possession of the property is not given to the mortgagee (bank)
• Mortgagee has right of foreclosure i. e. get the property sold for recovery of dues

Equitable mortgage - Mortgage as per section 58(f)is a equitable mortgage which is collateral security type of mortgage where only title deeds of the property are deposited with the mortgagor.

Delivery of documents of title to immovable property to creditor or his agent

·         Such delivery at notified town

·         Delivery of documents with intention to create mortgage to secure existing or future debt

·         Needs no registration but needs stamp duty