Legal Documents

1
Legal Documents

• By
• Noman Ahmed
• KASB Bank

2
Housing Financing Agreement
3
Essentials

• Interpretation
• Sale Purchase of asset
• Payment of Price
• Responsibility of Bank
• Prepayment
• Customers Presentations Warranties
• Security

4
Essentials (Cont.)

• Fees Charges
• Events of Default
• Declaration Rights
• Indemnity Clause
• Address
• Cancellation or Reduction
• Termination

5
Essentials (Cont.)

• Remedies Waivers
• Provisions regarding Amendments
• Further documents
• Governing Law
• Signatures Thumb impression
• Schedule

6
Technical Aspects

• Repayment Schedule
• Suggested Paragraph
• Prudential Regulation
• Prompt payment bonus
• Purpose of the mortgaged property
• Authority Letter for taking possession of the
  register document
• Intimation letter for equitable mortgage
• Date of execution of financing agreement

7
Mortgage by Deposit of Title Deed

• As per section 58 (f) of Transfer of Property Act
  Where a Person delivers to a creditor or his
  agent documents of title to immovable property,
  with intent to create a security thereon, the
  transaction is called a mortgage by deposit of
  title of deed

8
Essentials

• Debt
• Deposit of Title Deed
• Intention to create a security thereon

9
Memorandum of Deposit of Title Deed (MODTD)

• Technical Points to be observed
• Past tense
• Filling of date
• Specific property
• Property that may come to existence in future
• Title deed must connect the customer with
  property

10
Memorandum of Deposit of Title Deed (MODTD)

• Technical Points to be observed
• Document deposited must be title deed
• Financing agreement date
• Signature of customer on every page
• Detail of title deed
• Witnesses

11
General Power of Attorney

• What is GPA
• Why and when applicable
• Legal implications
• Financial Charges for GPA
• Kinds of GPAs
• Importance

12
Lien Marking in Revenue Record

• Property governed by an authority
• PTM is tantamount
• Free hold land
• Lien marked fard
• Oral gift

13
Token Registered Mortgage

• Security
• Redemption Deed
• Addition to Equitable charge
• Mandatory requirement
• Search certificate
• Must be mandatory

14
Letter of Intimation

• Letter of intimation to concern Sub-Registrar
• Ensure that property is in Ban list

15
List of Standardized Documents

• Application Form
• Sanction Letter
• Financing Agreement
• MODTD
• Undertaking for completion of Post transaction
  Formalities (if any)

16
List of Standardized Documents (cont.)

• Intimation letter regarding Equitable Mortgage to
  the concerned Sub Registrar
• Lien Marking in Record of rights (Specifically in
  Revenue Record properties)
• Token Registered Mortgaged
• Authorization to take possession of the
  Registered Document in case of Purchase of
  Property.

17
Thank You
18
Suggested Paragraph

• Repayment schedule means the Repayment
  Schedule attached hereto as Schedule II, as
  amended and/ or replaced, from time to time, in
  accordance with the terms hereof depending upon
  the ____ prompt payment bonus and ____ Months
  KIBOR-ASK side (Base Rate) plus ___ Basis point
  without prompt payment bonus. Upon such revision,
  the purchase price mentioned in clause ___ above,
  shall be deemed to have been correspondingly
  increased or decreased or and the Re-payment
  Schedule annexed hereto as Schedule II shall also
  be amended and replaced by the Bank