07 August 2009
In case of equitable mortgage, it is through deposit of the title deeds with the lendor. However, the property stands in the name of borrower and no lien in favour of lendor is recorded in revenue records. No stamp duty is payable on equitable mortgage.
In case registered mortgage, the lien in favor of the lendor for the amount lent is recorded in the revenue records and borrower can not sell/further mortgage without the prior written consent of the lendor. A stamp duty of approx. 6% (in punjab) is payable on the amount lent.
E.g. Rs 1000000/- borrowed with attract stamp duty of Rs 60000/- in case of registered mortgage, however, no such amount is to spent in case of equitable mortgage.