11 May 2007

Mortgaged Property

Chairperson of the Debts Appellate Tribunal recently said (at a Chennai meeting), that Banks should be required to take steps to register mortgaged properties. At present equitable mortgage is not reflected in encumbrance certificates issued by registration offices. Thus, people buying mortgaged properties come to know of an encumbrance only when the property is put up for sale.

If such a regulation was put into effect, it would go some way in ensuring potential property purchasers (throughout Tamil Nadu, and in particular Tiruvannamalai District) would know right at the beginning of negotiations the extent of all existing mortgage encumbrances on the property they wished to purchase.

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