Mortgage by Deposit of Title Deeds

A mortgage is a legal arrangement where a property owner borrows money using their property as security. One specific type of mortgage is created through the deposit of title deeds.

Understanding Mortgage by Deposit of Title Deeds

This type of mortgage occurs when a borrower delivers the original documents proving ownership (title deeds) of their immovable property to a lender. This delivery is made with the clear intention of securing a loan or ensuring the repayment of a debt.

The core principle behind this mortgage is the lender's possession of the title deeds, which signifies the borrower's intent to create a charge on the property as security for the loan. It's a way to establish a legal right for the lender over the property without needing a formal registered deed in many situations.

Equitable Mortgage Connection

The question asks for another name for 'Mortgage by deposit of title deeds'. This practice is most commonly recognized and referred to as an Equitable Mortgage. This is because equity courts recognize the intention of the parties, even if the formal legalities of other mortgage types are not strictly followed. The deposit of deeds, coupled with the intention to create security, is sufficient in equity to establish the lender's interest.

Comparison with Other Mortgage Types

• Simple Mortgage: Typically requires the execution of a deed and may involve specific registration requirements depending on the jurisdiction. It doesn't rely solely on the deposit of title deeds.
• English Mortgage: Involves the ostensible sale of the property by the borrower to the lender, with a condition that the property will be reconveyed upon repayment of the loan.
• Anomalous Mortgage: This is a category for mortgages that don't fit into the other specific classifications defined by law. It's a residual category.

Therefore, the mortgage created by the simple act of depositing title deeds with the intention to create security is known as an Equitable Mortgage.