• Mortgage registration with out possession in Andhra Pradesh

Hi, I am lending money to some one and in return the other party is doing mortgage registration on their property(Agriculture land + Guest House in it) for security.
I have following questions. 

1 .What is the legal process for possession if conditions not met by other party?

2. How long does that process takes in best and worst case scenarios?

3. What kind of protection does system provides for me?

4 .What is the wording I should put in registration documents for 
      A. Possession of property if other party didn't clear with in time mentioned. 
      B. Didn't paid interest in agreed intervals.
Asked 10 months ago in Property Law from United States
Religion: Hindu
1. Since mortgage deed is registered this is enough for your security.
2. If you want to have possession of the same as well then you have to mention a time in the deed itself. generally the time of possession continue till the mortgagor redeem the mortgage.
3. If the mortgagor fails to repay the loan within the stipulated time , you can foreclose the loan and sell the property.
4. Do not fix the wordings of the deed by yourself. Engage a lawyer and entrust him to do the drafting.
Devajyoti Barman
Advocate, Kolkata
5179 Answers
54 Consultations
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1. If the loan is not repaid within the agreed period the mortgagee can sell the property to apply sale proceeds towards the unpaid amount and the balance sale proceeds would have to be remitted to the mortgagor.

2. A mortgage deed is a legal instrument which creates charge on the property and in favour of the mortgagor.

3. You are not a trained legal mind, so get the mortgage deed drafted by a lawyer, It is better to pay your lawyer initially than spending 10 times the amount of his fee on filing lawsuits.
Ashish Davessar
Advocate, Jaipur
18061 Answers
447 Consultations
5.0 on 5.0
Hi, suggest to go for registered mortgage deed for both agricultural land and guest house. Also take a special irrevocable power of attorney (registered) after registration of mortgage. So typically you should have the following.
a) loan agreement duly stamped. 
b) promissory note.
if documentation is proper you can recover your money within 1 year.
c) registered mortgage deed  and 
d) special power of attorney. 
Also ensure that loan is disbursed through cheque and post dated Interest cheques for entire duration of loan and principal amount cheque. Get three to four reliable witnesses.if documentation is proper you will recover your money within 1 year in case of default by borrower. 
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
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Hi,  Borrower has to execute "Usufructuary mortgage" as per this kind of mortgage, mortgagor has deliver the possession  of the mortgaged property to the mortgagee. After receiving the entire amount you can re-deliver the possession to the mortgagor.

2. The deed of mortgage has to be registered before the sub-registrar office.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
1) in the event of failure of mortgagor to repay your dues you can exercise your right of foreclosure 

2) under section 67 of transfer of property act right to foreclosure can be exercised by mortgagee 

3) you  can obtain order from court that property be sold to recover your outstanding dues 

4) mortgagor can redeem his property by paying the dues in court 

Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
5.0 on 5.0
Hi, good start. But you have to go for registered mortgage deed with deposit of title deeds.  Ask your borrower to get you a latest encumbrance certificate. That should give you the snapshot of links and how the borrower got his title and also encumbrances if any. 
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
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1) as per format of simple mortgage in case of failure to repay your loan you are liberty to sell off remortgaged property 

2) consult a local lawyer
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
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These copy-paste formats are recipes for disaster in the court. Engage a lawyer and have the instrument drafted from him.
Ashish Davessar
Advocate, Jaipur
18061 Answers
447 Consultations
5.0 on 5.0
1 .What is the legal process for possession if conditions not met by other party?
File a mortgage suit for recovery of money and follow further proceedings o the basis of valid mortgage in your possession



2. How long does that process takes in best and worst case scenarios?
A mortgage suit will get disposed in a matter of one year.



3. What kind of protection does system provides for me?
You have the property documents with you which is a security for your amount.



T Kalaiselvan
Advocate, Vellore
13948 Answers
127 Consultations
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