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CS Professional · Drafting, Pleadings and Appearances · Drafting of Agreements, Deeds and Documents

Anil Mehta wishes to mortgage his flat to a lender for Rs 20,00,000 by a mortgage deed other than by deposit of title-deeds. Which drafting and execution requirement follows from section 59 of the Transfer of Property Act, 1882?

The mortgage must be effected by a registered instrument signed by the mortgagor and attested by at least two witnesses. Section 59 requires this where the principal money is one hundred rupees or more and the mortgage is not by deposit of title-deeds.

  1. AA registered instrument signed by the mortgagor and attested by at least two witnessesCorrect
  2. BAn unregistered instrument signed by the mortgagor alone
  3. CAn oral agreement with delivery of possession
  4. DA registered instrument signed by the mortgagee and attested by one witness

Explanation

Where the principal money secured is one hundred rupees or upwards, a mortgage other than by deposit of title-deeds can be effected only by a registered instrument signed by the mortgagor and attested by at least two witnesses. Rs 20,00,000 exceeds the threshold, so oral or unregistered modes are unavailable.

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