Memorandum of Deposit of Title Deeds
The Memorandum of Deposit of Title Deeds is an official guidance template for recording a borrower’s deposit of original property title deeds with a lender as security for a sanctioned loan. The supplied text does not identify the issuing department, an order number or an issue date, although the form contains a blank execution date with the year 2017.
What the document does
The Memorandum of Deposit of Title Deeds records an arrangement in which a borrower deposits title deeds for immovable property with a bank or other lender. The deposit is intended to create an equitable mortgage securing repayment of a sanctioned loan, interest and other amounts payable to the lender.
The document refers to Section 58(f) of the Transfer of Property Act, 1882 as the basis for creating a mortgage by depositing title deeds.
Who may be affected
The Memorandum of Deposit of Title Deeds is relevant to:
- A property owner who has been sanctioned a loan and agrees to use immovable property as security.
- A bank or other lender receiving the title documents as secured creditor.
- Legal heirs or people claiming through the borrower, because the definition of the borrower includes them.
- Successors and assigns of the lender, unless the context excludes them.
- A buyer or professional checking whether title deeds have been deposited to secure a loan.
Information to be completed
The Memorandum of Deposit of Title Deeds contains blanks for the transaction details. These include:
- The place and date of execution.
- The borrower’s name, parent’s name, age, address, identification number and mobile number.
- The lender’s name and branch.
- The sanctioned loan amount, stated in figures and words.
- The place connected with the sanctioned loan.
- The title deeds deposited with the lender.
- The description of the immovable property offered as security.
Key provisions
The Memorandum of Deposit of Title Deeds states that:
- The borrower has been sanctioned a loan and agrees to secure repayment by depositing deeds for property belonging to the borrower.
- The borrower is authorised to deposit the title documents with the intention of creating a mortgage.
- Schedule A must list the original documents of title deposited with the lender.
- Schedule B must describe the immovable property covered by the security.
- The security covers the loan amount and interest that becomes due and payable.
- The security also covers commitment charges, costs, charges and other money that may become payable to the bank from time to time.
- The borrower signs the document as the party of the first part.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this form mean my property is being used as loan security?
Yes, when completed and executed, the form records that the borrower deposited the property’s title deeds with the lender intending to create an equitable mortgage for the loan.
Which property documents must be listed?
Schedule A is for the original title documents deposited with the lender. The source does not specify particular document types.
Where is the secured property described?
The immovable property is to be described in Schedule B.
Does the security cover only the original loan amount?
No. The form states that it also covers interest, commitment charges, costs, charges and other money that may become payable to the bank.
