Legal Question in Credit and Debt Law in India

Hand loan -5 lakhs

My frined asked 5 lakhs from me as hand loan.I agreed to pay that money by putting one condition.He is ready to do that.He has some land on his name.I verified the genuinity of tha land.If he fails to pay that money back by specified date,I should be in a position to occupy /sell that land.Please advice what should I do to make it like that.Thanks in advance


Asked on 4/14/09, 4:33 am

2 Answers from Attorneys
Sunil Goel S.G. SOLICITORS

Re: Hand loan -5 lakhs

If you want to do what you have stated, then you would have to make this transaction as a mortgage transaction and not just simply a loan transaction. It is called 'Mortgage by deposit of Title Deeds'. You get a suitable mortgage agreement drafted by some expert lawyer and get it signed and take the original Title Deeds of the property from your friend. In case your friend fails to pay the loan amount, then you can recover the loan amount plus agreed interest by selling the said property and returning the balance amount to your friend.

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Answered on 4/14/09, 7:23 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Hand loan -5 lakhs

The land owner may mortgage his land in favour of a lender against the money he may like to borrow.

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Answered on 4/15/09, 3:38 pm


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