Module: General Practice
Q118: Which type of Mortgage is created by the simple delivery of documents of title to immovable property with the intent to create security, and is valid only in notified towns?
✅ Correct Answer: C
Equitable Mortgage (Section 58(f) of Transfer of Property Act): Method: It is created by the delivery (deposit) of title deeds to the lender with the intent to create security.
Registration: It does not require registration with the Sub-Registrar (unlike a Registered Mortgage), making it cost-effective as it saves on stamp duty.
Location: It can only be created in specific towns notified by the State Government (e.g., Metro cities, District Headquarters), although the property itself can be located anywhere in India.
Registration: It does not require registration with the Sub-Registrar (unlike a Registered Mortgage), making it cost-effective as it saves on stamp duty.
Location: It can only be created in specific towns notified by the State Government (e.g., Metro cities, District Headquarters), although the property itself can be located anywhere in India.