• Property being simple mortgage can be sold?

I have given loan to my friend by way of simple mortgage of his house property in the sub registrar office, now i would like to know that can he sale the property without  knowing to me and without paying back the loan amount.
And if he can sale the house property without knowing to me what precaution should i take.
Asked in Property Law from Hyderabad, Telangana
Religion: Hindu
1) since it is an  simple mortgage you have to file suit to recover your money advanced as loan with interest

2) issue legal notice to your friend to repay your money with interest 

3) if he fails to pay your money you have to file suit to recover money 

4) you can seek stay of sale of property by your friend 
Ajay Sethi
Advocate, Mumbai
28377 Answers
1540 Consultations

5.0 on 5.0

When a mortgage is executed a charge is created on the property under mortgage. The mortgagor cannot sell it without the permission of the mortgagee. If he attempts to sell it then file a suit for injunction against him to restrain him from creating third party rights in the property unless he repays the loan with interest. 
Ashish Davessar
Advocate, Jaipur
19897 Answers
518 Consultations

5.0 on 5.0

Hi 
1) You need not worry at all as you have effected a simple mortgage by registering the document at sub-registrar office. 
2) Your friend cannot unilaterally cancel the mortgage at the sub-registrar office as Unilateral cancellation of mortgage deed is not permitted in law.
3) You will need to be physically present and sign the mortgage cancellation deed along with the borrower for cancellation of mortgage deed.
4) Also i presume you have the original title deed with you. 
5) If you anticipate that your friend is planning to sell the property without repaying the loan / or is adopting dubious ways, the best way is to recall the loan and ask your friend to repay the monies failing which you take over the property by filing a Summary suit under Order 37 rule 1, 2 CPC. 
6) A summary suit will be decided in a maximum of 3 months in any court in India.
Hope this helps
Rajgopalan Sripathi
Advocate, Hyderabad
995 Answers
73 Consultations

5.0 on 5.0

A mortgage is the transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability. 
Thus, since the borrower has pledged this property towards the security of the loan availed, he cannot sell the same to an outsider. What about the property documents, did not not hand it over to you, since the mortgage is registered, it will appear as an encumbrance in the records so the buyer, if prudent enough may not opt for buying the same. 
In any case you can file a money recovery suit and seek this property to be attached before judgment as security to the amount borrowed. 
T Kalaiselvan
Advocate, Vellore
18552 Answers
175 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a Lawyer

Property Lawyers

T Kalaiselvan
Advocate, Vellore
18552 Answers
175 Consultations

5.0 on 5.0

Ajay Sethi
Advocate, Mumbai
28377 Answers
1540 Consultations

5.0 on 5.0

Krishna Kishore Ganguly
Advocate, Kolkata
13901 Answers
308 Consultations

5.0 on 5.0

Ashish Davessar
Advocate, Jaipur
19897 Answers
518 Consultations

5.0 on 5.0

Devajyoti Barman
Advocate, Kolkata
7253 Answers
81 Consultations

4.9 on 5.0

Shivendra Pratap Singh
Advocate, Lucknow
3303 Answers
51 Consultations

4.9 on 5.0

Rajgopalan Sripathi
Advocate, Hyderabad
995 Answers
73 Consultations

5.0 on 5.0

Ajay N S
Advocate, Ernakulam
2068 Answers
24 Consultations

5.0 on 5.0

Shashidhar S. Sastry
Advocate, Bangalore
1339 Answers
74 Consultations

5.0 on 5.0

Kiran N. Murthy
Advocate, Bangalore
829 Answers
62 Consultations

5.0 on 5.0