Title Deed

A legal document evidencing ownership of immovable property. In equitable mortgages, the borrower deposits the original title deeds with the bank, which creates the security interest. On SARFAESI enforcement, the bank takes possession of and eventually sells the property using the title deeds.

In practice, the title deed is the operational heart of an equitable mortgage and therefore of a large share of bank security in India. Because an equitable mortgage is created simply by deposit of original title deeds with the lender in a notified town, the deed itself — not a separate registered instrument — evidences both ownership of the immovable property and the security interest. When an account turns non-performing and SARFAESI enforcement begins, the bank relies on those deposited deeds to establish its charge, take possession, and ultimately convey clear title to an auction purchaser. The risk that recurs is custody and authenticity: if the deposited deeds are photocopies, are subject to a prior deposit with another lender, or relate to a property the borrower does not actually own, the mortgage and the enforcement built on it can collapse. Lenders therefore retain originals, verify them against the registry, and guard the chain of custody. Well-advised lenders confirm originals are held before relying on an equitable mortgage.