Before answering how to find if a property is mortgaged and with which bank, it is essential to understand the two types of property mortgages in India. This foundational knowledge will provide a comprehensive view of how mortgage details are recorded and verified.
Types of Property Mortgage
Mortgages in India are broadly classified into two categories:
- Registered Mortgage
- Equitable Mortgage
- REGISTERED MORTGAGE
A Registered Mortgage is documented at the Sub-Registrar Office or with a designated government agency. The details are officially recorded and publicly accessible.
For instance, in India, registered mortgage data is maintained by the Stamps and Registration Department of the respective state. This information is reflected in the Encumbrance Certificate (EC), which can be extracted online in many states.
Most public sector banks in India prefer registered mortgages as it provides them with a clear legal standing in case of borrower default.
Closure of Registered Mortgage:
Once the loan is repaid, the borrower can register a Deed of Reconveyance to remove the mortgage lien from government records.
- EQUITABLE MORTGAGE
An Equitable Mortgage involves the borrower depositing the original title documents with the lender as security for the loan. This type of mortgage is not registered with any government authority and therefore is not reflected in the Encumbrance Certificate.
Equitable mortgages are typically used by private lenders and banks.
Closure of Equitable Mortgage:
After the loan is repaid, the lender issues a No Objection Certificate (NOC) and returns the original title documents to the borrower.
HOW TO VERIFY IF A PROPERTY HAS A MORTGAGE
Here are three reliable methods to determine if a property is under mortgage and with which bank:
- Extract the Encumbrance Certificate (EC)
The EC provides a record of all registered transactions related to a property, including sale, gift, lease, and mortgage.
Example Case:
Suppose you wish to purchase a resale flat in Bangalore. Before proceeding, it’s crucial to check if any mortgage exists. To do this, we extracted the EC from Kaveri Online Services. Refer to below EC
From the EC:
- Serial No. 2 dated 07-12-2018: Shows a mortgage of Rs.39,50,000 with The Federal Bank Ltd. (highlighted in black in the image).
- Serial No. 1 dated 22-08-2023: Indicates repayment of the mortgage and registration of the Reconveyance Deed (highlighted in green).
- Verify the Original Title Documents
If the EC does not reflect any mortgage, the next step is to request the original title documents from the seller. Key documents include:
- Sale Deed
- Parent Deed
- Tax Receipts
- eKhata
Sellers often hesitate to share originals, fearing misuse. In such cases, request to inspect the originals in their presence and return them immediately after verification.
NOTE: If the seller holds the original documents, it is a strong indication that the property is not mortgaged. Conversely, refusal or inability to produce them could imply the presence of an equitable mortgage.
If an equitable mortgage existed, ensure the seller provides the No Objection Certificate (NOC) from the lender.
- Search on CERSAI
CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India) is a central government registry that maintains records of secured assets and loans.
To perform a public search:
- Visit: https://www.cersai.org.in
- Click on Public Search
- Select Immovable under Asset Category
- Enter property details (flat number, apartment name, and address)
- Proceed with payment of ₹12
- View mortgage details, including the lender’s name and loan amount
OUR ASSISTANCE
We provide professional assistance in extracting Encumbrance Certificates and verifying property mortgage
To avail our services, please contact:
- Email: pgnproperties@gmail.com
- WhatsApp: +91-97424-79020