Is there a way in uttar pradesh to mark bank's lien on property mortaged by deposite of title deed (equitable mortgage). there has been instances of property being sold by borrower vide certified copy while original deed has been deposited with bank.
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1. In notified cities equitable mortgage can be created by deposit of title deed only and no registered deed of mortgage is required.
2. Howeevr in no city there is permission to create equitable mortgage on the basis of certified copy of the title deed.
3.So in this case the mortgage is itself made and the bank can not enforce SARFAESI Act to recover loan.Civil suit though would remain a remedy.
In mahrashtra in case of creation of equitable mortgage by deposit of title deeds, the mortgagor is now required to send online notice of the mortgage to the registering officer within 30 days using e-filing module under Section 89B of Registration Act. -
2) in UP bank can also register the equitable mortgage to avoid legal complications
The mischievous and culprit borrower can sell the porperty on the basis of the certified registration copy of the sale deed suppressing the fact that the property is under EM with bank for bank loan purpose.
Therefore you have to be more vigilant while purchasing the property based on the certified copy of the title instead of original title deed. You should insist the vendor about the original title deed.
You can instruct your advocate to have a title search through bank too as the bank would have initiated the registration of memorandum of title deeds for EM purpose.
It is not advisable to proceed with the purchase without obtaining proper legal opinion from an experienced lawyer.
