Home loan: Intimation of mortgage by way of deposit of title deed




E-filing means online filing of notices of intimation of mortgage of property specified in Section 89B of the Registration Act, 1908

Buying a house is not an easy task. Besides selecting a house, location and having adequate financial resources, we also need to complete legal procedures such as registration of the property, transfer of name, etc. Most of us also avail for a home loan to ensure that we have sufficient funds to buy the house. Ample information is available online on how to avail a home loan from financial institutions. However, most of us would be unfamiliar with what is “Filling of Notice of intimation in case of mortgage by way of Deposit of title deed”. The below article provides information on e-filing of Notice of Intimation Regarding Deposit of Title Deed.

e-Filling of Notice of intimation in case of mortgage by way of Deposit of title deed came into effect from 1 April 2013. E-filing means online or electronic filing of notices of intimation of mortgage of property specified in Section 89B of the Registration Act, 1908.

These amendments have been carried out in order to safeguard the interests of banks and society. Earlier, the agreement / intimation relating to mortgage by way of deposit of title deed was out of public domain. Due to this, there was scope for fraudulent practices like availing loans from multiple banks on same property or disposing of the property which is already mortgaged. Therefore these amendments have been brought with the objective of preventing such frauds.

In case of Mortgage by way of Deposit of title deed done on 1st April 2013 and thereafter:

  • If an agreement is executed or signed between the Mortgagor and the Mortgagee, it has to be compulsory registered. The usual time limit for registration is four months from the date of execution.
  • If such agreement is not executed, then the Mortgagor has to file a notice of intimation of such mortgage. This notice should be filed within 30 days from mortgage.
  • When an agreement is executed and registered according to clause (1), then filing of notice of intimation is not required.
  • The non registration of agreement / non filing of notice of intimation may defeat the legality of the mortgage and cause injury to the interests of parties. Any person who fails to file such notice within the prescribed time limit shall be liable for punishment under section 89C of the Act.

Procedure for the Registration of agreement: The agreement may be registered with the Sub Registrar office, within the local limits of who’s the whole or part of the mortgaged property is situate. The procedure for the registration will be the same as for the other documents.

Frequently asked questions

What is the time limit for filing of notice?

The notice should be filed within 30 days from the date of mortgage.

Can the time limit be extended in exceptional cases or otherwise?

No. As it is a legal provision and not an administrative order; the time limit can not be extended.

What is the mode/process of filing?

For the convenience, of citizens department has introduced online e-filing system which is presently available to Banks/Non Banking Financial Institutes; Citizens can file the notice on line from the banks. The details regarding the process are available on Department of Registration and Stamps, Maharashtra website.

Apart from the e-filing, as a temporary arrangement, citizens can file the notice physically. The format of notice is enclosed herewith.

Where the notice has to be filed?

The notice has to be filed to the Sub Registrar office, within whose jurisdiction the property (of which the title deeds are deposited) is situated.

Whether the days are fixed for physical filing?

The designated offices can accept the notice for filing on any working day in the working hours.

About stamp duty?

The Stamp Duty is chargeable as per Article 6 of the Maharashtra Stamp Act 1958,.i.e. @ 0.1% if the Loan amount is Rs 5 lakh or below, and @ 0.2% if the Loan amount is above Rs.500000/-. If the stamp duty as above is paid on any other document like Memorandum or agreement for same loan transaction then Stamp Duty of Rs 100/- has to be paid on the notice.

Filing Charges & other miscellaneous charges?

The filing fee is Rs 1000/- irrespective of the Loan amount. In case of physical filing only (and not in the case of on line filing), the document handling charges of Rs 300/- has to be paid.

How to pay the Stamp Duty, Filing Charges and the document handling charges?

In case of e-filing: The Stamp Duty and Filing Charges have to be pay online through the Government Receipt Accounting System.

In case of physical filing: The Stamp Duty and filing charges can be paid through any permissible mode including the GRAS. If the filing fee has to be paid through DD, then it should be in favor of the respective Sub Registrar office and payable in the respective City. The document handling charges has to be paid in cash.

What is the actual process of physical filing? What other documents are required?

  • Get the notice prepared in the prescribed format.
  • Pay the proper Stamp Duty
  • Affix the photographs and put the signature/s thumb impression/s of the mortgagor/s
  • Get it verified from the bank (the proper officer of bank has to put the signature with his seal)
  • Mortgagor has to submit it to the Sub Registrar along with a photocopy of the notice.
  • If Stamp Duty as per Article 6 is paid on another document and Rs 100/- is paid
  • on the notice, then the attested true copy of the another document has to be submitted along with the notice.
  • Sub Registrar after verification of Stamp Duty, shall pass receipt of the filing fee and document handling charges, and shall give an acknowledgment on the photocopy of the notice.

Following documents are not required:-

  1. Covering letter from bank,
  2. Receipt of the Stamp Duty paid on the notice, (if it is of Rs.100/ or franking is done by the concern bank)
  3. Copy/s of the title deeds deposited with the banks

If title deeds of multiple properties are deposited then where does the notice to be filed?

  • If all the properties are situated within the same Registration Jurisdiction, then a single notice containing information of all properties and their title deeds is sufficient.
  • If the properties are situated within the different Registration Jurisdiction, then the separate notices have to be filed to the every Sub Registrar of whose jurisdiction the property (of which the title deeds are deposited) is situated. For such notices the filing fees and document handling charges has to be paid separately.

Are any witnesses /agent required in Sub Registrar office?

No.

Is bank representative required to remain present in Sub Registrar office?

No.

Source: Department of Registration & Stamps, Government of Maharashtra, IGR Department



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