Official guidance, Tamil Nadu land law
DEED OF FURTHER CHARGE (WITH POSSESSION)
The Deed of Further Charge (With Possession) is an official guidance form for recording an additional loan secured on property already mortgaged with possession to the same mortgagee. The supplied form does not identify an issuing department or order number, and it leaves the execution day blank while referring to the year two thousand seventeen.
What the document covers
The Deed of Further Charge (With Possession) records an additional loan from an existing mortgagee to a mortgagor. It applies where the property has already been mortgaged with possession and possession continues with the mortgagee under the earlier registered mortgage.
The form requires details of the mortgagor, mortgagee, earlier sale deed, earlier mortgage deed, registration particulars, loan amount, property market value and property schedule. It also states that references to the mortgagor and mortgagee include their heirs, executors, administrators, legal representatives, nominees and assigns.
Who may be affected
The Deed of Further Charge (With Possession) directly affects:
- A property owner obtaining further funds against an already mortgaged property.
- The existing mortgagee lending the additional amount.
- Heirs, legal representatives, nominees and assigns of either party.
- A purchaser if the mortgaged property is later sold to recover the debt.
The mortgagor declares sole ownership, valid and marketable title, continuous possession before the earlier possessory mortgage, and payment of government and local authority dues. The mortgagor also declares that no other mortgage, charge or encumbrance has been created over the scheduled property.
Main terms
The Deed of Further Charge (With Possession) provides that:
- The scheduled property secures repayment of the additional loan.
- Possession remains with the mortgagee until the entire loan is discharged.
- Repayment is due on demand or after the period and notice entered in the blank spaces.
- The mortgagee must discharge the mortgage and return possession only after repayment.
- If the debt becomes payable, the mortgagee may exercise powers under the Transfer of Property Act, 1882, and may also file a suit for sale of the property.
- If a sale follows due notice, the mortgagor must join in conveying the property to the purchaser. On default, the mortgagee may execute the conveyance.
- If sale proceeds are insufficient, the mortgagor must personally meet the balance from other properties.
- Any surplus remaining after costs and the loan are deducted must be paid to the mortgagor.
- The mortgagee must regularly pay property taxes and other charges while retaining possession.
- Notice sent or left at the mortgagor's address in the deed is treated as properly served.
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 the mortgagee keep possession after the further loan is given?
Yes. The form states that possession remains with the mortgagee until the entire loan amount is discharged.
When must the additional loan be repaid?
The form allows repayment on demand or after a specified number of years with a specified notice period. Those periods are left blank for completion.
What happens if sale proceeds do not cover the mortgage debt?
The mortgagor must personally make good the balance from other properties. Any surplus after costs and the loan are paid must be returned to the mortgagor.
Who pays property taxes while the mortgagee has possession?
The mortgagee agrees to pay the taxes and other charges regularly until the mortgage is discharged and possession is returned to the mortgagor.
