guide lines (mortgage)

8/18/2019 Guide Lines (Mortgage)

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MORTGAGE PERMISSION

1. Section 58 of the Transfer of Property Act defines “mortgage”,

“mortgagor”, “mortgagee”, “mortgage-money” and “mortgage-deed”.

A mortgage is the transfer of an interest in specific immovabe

property for the p!rpose of sec!ring the payment of money advanced

or to be advanced by "ay of oan, an e#isting or f!t!re debt, or the

performance of an engagement "hich may give rise to a pec!niary

iabiity.

$. The transfer is caed a mortgagor, the transferee a mortgagee% the

principa money and interest of "hich payment is sec!red for the time

being are caed the mortgage-money, and the instr!ment &if any' by

"hich the transfer is effected is caed a mortgage-deed.

(. )n simpe "or*s, mortgage is a transfer of an interest in an immovabe

property for sec!ring oans. Therefore, in eases "here the ease deed provides for prior permission of the essor for assignment of ease

hod rights, it sha be obigatory for the essee to obtain prior

permission of the essor before mortgaging the premises. +ai!re to do

so sha amo!nt to breach of ease terms on "hich the property can be

reentered.

4. APPLICATION FOR GRANT OF MORTGAGE PERMISSION:

A essee may himsef appy for mortgage permission in the prescribedform &anne#!re )' aong"ith the doc!ments indicated in the

appication form.

5. PROCEDURE FOR GRANT OF MORTGAGE PERMISSOIN:

&i' n receipt of an appication for the grant of mortgage

permission, the same sha be entered in the comp!ter and a

code n!mber assigned and passed on to the concerned

eaing Assistant by the Section fficer. The concerned A

sha aso prepare the comp!ter inp!t and e#amine theappication "ith reference to the chec*-ist &Anne#!re )

/A0'.

&ii' The A sha chec* !p "hether there are any breaches of the

terms of ease deed aready in the *no"edge of the office%

and if so, no action on the appication sha be ta*en ti the

breaches are removedtemporariy reg!ari2ed. 3here the


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essee is !nabe to remove the breaches b!t pay damages

!pto ens!ing 14th an!ary or 14th !y, "hichever is earier,

and aso f!r4nishes an !nderta*ing get the breaches

reg!ari2e on payment of charges ti these are removed, the

appication sha be processed f!rther for recovery of he

charges.

6. PURPOSE OF MORTGAGE:

A essee or a d!y a!thori2ed agent can see* mortgage permission for

the foo"ing p!rposes6-

&i' for raising oan for constr!ction of additions and ateration

to the b!iding% or

&ii' for raising oans for some other p!rposes i*e b!siness.

7. MORTGAGE PERMISSION FOR RAISING LOANS FOR

CONSTRUCTION/ADDITIONS AND ALTERATION OF THE

BUILDING:

&i' )f the demised premises is proposed to be mortgaged on

raising a oan for constr!ction or additions and ateration on

the eased and, the appicant sha f!rnished the origina

constr!ction pans d!y approved by the 79, aong"ith

one copy thereof d!y attested by the 9hief Architect eptt.

&ii' )n case there are breaches of terms of ease deed aready in

the *no"edge of the office, the pans sha be e#amined by

9.A. eptt. !nder the terms of the ease in order to

ascertain6-

&a' 3hether any additiona gro!nd rent is invoved% and

&b' )f the additiona gro!nd rent is invoved, !pto "hat

period the same has been paid.

&iii' )n case the premises are free from breaches as per records,

the pans for constr!ctions or additions and aterations on the

eased and sha be e#amined by the 9A eptt.

&iv' After the pans are sanctioned !nder the ease, and the

breaches, if any, removed or reg!ari2ed, the appicant sha

be as*ed to deposit a s!m of :s. 1;;- to"ards the cost of


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forms and preparation of a tripartite agreement. This amo!nt

can be paid thro!gh )ndian Posta rder or


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&ii' #ec!tion of a tripartite agreement providing for the

recovery of !nearned increase etc. in the even of forecos!re

of the mortgage.

3here a mortgage comes to notice ony after the forecos!re

thereof, penaty for sae "itho!t permission sha aso be

recovered. The period for the p!rpose of sae "itho!t permission

sha be co!nted from the date of sae or forecos!re to the date on

"hich intimation had been sent to the 79.

guide lines (mortgage)

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