28 February 2010
Hello all, my question is that, whether we need to register the mortgage deed and pay stamp duty on that? is yes then what is the basis of the stamp duty? and if not then, can we make that deed to on the simple stamp paper of Rs. 100/- or can we frank that of rs 100/-, pls let me know the proceedings. the Deed which i mentioned is the simple mortgage deed of house against the loan given. pls reply soon. thanks in advance.
01 March 2010
A mortgage deed has to be stamped with the appropriate value of stamp duty as applicable according to the respective state stamp act.
The registration of the deed may be done at the discretion of the bank. However, if it is not registered before the registrar, it does not invalidate the mortgage deed. Registration may be done at a later stage, if required, in case it is to be produced before a court of law.
Stamp duty is of a lower value than required by law will make the document defective. Which means that unless the defect is cleared (proper duty paid), it cannot be enforced by any court of law.