How Shivraj bought a house in his village through ‘MORTGAGE’?
“Namasthe! Shivraji...welcome. I was expecting your visit.
You are the talk of our village.” Arun kumar Yadav, first time, stood up and
gave a respectful welcome.
Shivraj was in all smiles. Now, he was the proud owner of
one of the largest cattle farms in the villages nearby. He had also kept his
word and paid in advance all his dues to Yadav. So, there was no reason why
Yadav should not stand up and welcome.
“Yadvji ... Namasthe! Because of God’s will and your blessings
I am here. You might have known that I am planning to purchase a land and build
a house. The agreement is over. I have already paid 1/2 of the price. I need
only 500 gold coins to pay the balance. I need your help. You can have my land
and house as the security. Within three years I’ll pay the entire money with
interest. Till that time, you can be in possession of my land and house. I will
live in my present hut”
“I whole heartedly appreciate your talk and promise. We
respect your sincerity, hard work and above all your promise. So, you need not
give your house to me.
1. You
need to give only the title deeds and parental deeds which you got from the
seller. That is more than enough.
2. In case of your failure, I may approach the
King’s court for establishing my right as mortgagee. I’ll get court’s nod for
selling or auctioning of your property to adjust my loan.
But, I know as usual, you will foreclose the loan with your
hard earned money.”
“Thank
you....Yadavji! Then, I can live
in my home on my own land, if I pay the dues without fail every month! Am I
right?”
Within a week of this discussion, Shivraj started building a
house. The house had the same mango tree
which was a witness in his case in Birbal’s court.”
There were rumors among people that Birbal might visit the
house during warming ceremony.
A Recap:
Bailment:
Delivery a goods for a certain purpose. If it is over, the goods should be
returned safely.
(Read previous post
on BAILMENT)
Pledge: is delivery of goods as security for a loan.
Possession is with the creditor (bank- ex: jewels-jewel loan)
(Read previous post
on PLEDGE.)
Mortgage: Mortgage
– Banks in India
It is cost effective. No registration
charges.
1 The debtor has to deliver the documents to
title deeds to a banker in a notified area for having secured a debt or to get
a new loan.
The purpose of
deposit of title deeds is to create a security against the debt.
(State governments
notify what are these towns. His property can be in any place- even in a
village or in a not notified area)
2. He can have his
loan in a nearby village branch of the same bank.
3. The legal
ownership passes to the creditor (bank).
4. But creditor has
to go to a court of law for remedy- that is sale in case of failure and adjust
the loan
Law that deals with
Mortgage is ‘Transfer of property act-1882.
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