Registration
This type of mortgage and the letter evidencing the deposit of title deeds in the nature of a forwarding letter or acknowledgement does not attract stamp duty and registration (See. 59 of TP Act). However, certain states like Maharashtra, Gujarat stipulate that even the mere deposit of title deeds with forwarding acknowledgement letter needs stamping and registration.
If the terms of the contract or the deposit of title deeds are reduced to writing such mortgage in Karnataka attract stamp duty at 1% on every Rs.5000/- that is Rs.50/- with a maximum of Rs.50,000/- Registration charges are 0.5 % with a maximum of Rs.10,000/-
Urban co-operative banks have concession of 50% on stamp duty id registration fee. This type of mortgage is popular, as it is easier, quicker, less expensive not subject to stamp duty and registration formalities except in few states and there will not be undue publicity ie concession available to urban co-operative banks if extended to all inks may help many borrowers. The remedies available to the creditor under. this type of mortgage are
l Personal Decree Against the Mortgagor
l Right to sale with the intervention of the Court
l Right to appoint a Receiver with the intervention of the Court.
l Right to take possession with the intervention of the Court.
Limitation available is 13 years under Article 62 of the Limitation Act 1963. When the mortgage is created by a limited company over its property such mortgage must be registered with the registrar of companies within 30 days of its creation irrespective of the type of mortgage.
Right of Mortgagor (Sec 60 of TP Act)
Mortgagor after fulfilling his part of the Contract, that is by paying e money secured, may require the mortgagee to deliver the mortgage deed and all documents relating to the mortgaged property. If the mortgagee is in a position to deliver back the possession and execute required document and at the cost of the mortgagee.
This right of the mortgagor is called Redemption of Mortgage.
However, such right of redemption can be invoked before the mortgagee files a suit for enforcement of mortgage.
Limitation period available is 30 years from the date on which the mortgagor performs his part of the contract, paying the money secured. Article 61 (a) of the limitation Act, 1963.