Legal Question in Real Estate Law in India
Whether equitable mortgage can be executed with a bank on the strength of allotment letter of a Flat, issued by MHADA Mumbai.Since MHADA is not executing any sale deed and after full payment of a consideration allotment letter is being issued.
2 Answers from Attorneys
Yes, equitable Mortgage by Deposit of Title Deed can be made on strength of Document of Title. It is not necessary that there shall always always be a Registered Sale Deed as a proof of title. In many cases of public auction, there are "Sale Certificate" which are proof of title, in earlier society there are "Share Certificate"as proof of title. I am not sure what MHADA issues as proof of title to its holders, but if "Allotment Letter" is the document by which property is allotted to its holder, and if it is a title document, then YES, equitable mortgage can be executed with the Bank, however, subject to restrictions and conditions stated in such Allotment Letter
www.vnmlaws.com
1) No. EM cannot be created on allotment letter.
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