Extension of Equitable Mortgage

This query is : Resolved

SARAVANAN.R (Querist)
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08 December 2009 Sir,

I presume that Equitable Mortgage is deposit of title deeds with a Bank for a loan.

The Bank has the Property over the assets. The Company cannot sell the property, till the loan is paid off fully.

Hope my perception about Equitable Mortgage is correct. Please let me know whether I am right.

Now, what is the extension of Equitable Mortgage.

Please let me know, what all requirements should be met by company while going for extension of Equitable Mortgage.

Kindly clarify by example

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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08 December 2009 Your concept about equitable mortgage is correct.

Extention of equitable mortgage is required when loan is not paid in three years. After three years; all the documents have to be signed with the bank which authorize the bank towards securities given for loan.

CA Rakhecha
Surat