Who Is Equitable Mortgage?

A mortgage secured by the lender taking possession of all original-title documents of the property serving as security for the mortgage. In case of non-payment, the lender now has the right of foreclosure, sale, or receivership.

Which mortgage is equitable mortgage?

Equitable mortgage is also known as “mortgage by deposit of title deeds†. As the name suggest, equitable mortgage is created by the borrower in favour of the lender by deposit of title deed of immovable property as security to a lender until the loan is fully repaid.

What is the difference between mortgage and equitable mortgage?

Process: One of the key differences between the two processes is the making of the agreement itself. In an equitable mortgage you, the buyer of the property, have to buy a stamp paper. In a registered mortgage, you would need to approach the sub-registrar office for the same.