The Role of a Murtahin in Home Buying!

Murtahin is an Arabic word meaning “mortgagee”. In India, it is commonly used in land and revenue records to refer to the mortgagee in a mortgage transaction. When a person takes a loan from a bank to buy a home, the bank becomes the mortgagee and the person taking the loan becomes the mortgagor. The mortgagor becomes the Murtahin in this case.

The role of the Murtahin (mortgagee) in the home buying process is to:

  1. Provide the loan amount to the mortgagor (borrower): The Murtahin will provide the loan amount to the mortgagor in exchange for a mortgage on the property being purchased. The mortgage is a legal document that gives the Murtahin the right to take possession of the property if the mortgagor defaults on the loan.
  2. Register the mortgage with the relevant authorities: The Murtahin is responsible for registering the mortgage with the relevant authorities, such as the Registrar of Deeds or the Sub-Registrar. This registration will ensure that the Murtahin has a legal interest in the property.
  3. Protect their interest in the property: The Murtahin is responsible for protecting their interest in the property. This includes taking steps to ensure that the mortgagor does not damage or destroy the property, and that the mortgagor pays the property taxes and other charges on time.
  4. Collect the loan repayments from the mortgagor: The Murtahin is responsible for collecting the loan repayments from the mortgagor. This includes sending out statements, processing payments, and taking legal action if the mortgagor defaults on the loan.
  5. Release the mortgage once the loan is repaid: Once the mortgagor has repaid the loan in full, the Murtahin will release the mortgage. This will release the mortgagor’s legal obligation to repay the loan, and it will also remove the Murtahin’s legal interest in the property.

The process of becoming a Murtahin (mortgagee) in India can vary depending on the state in which you live. However, the general process is as follows:

  1. Apply for a mortgage loan from a bank or other financial institution.
  2. Provide the bank with the required documentation, such as your income proof, property papers, and identity proof.
  3. The bank will appraise the property and assess your creditworthiness.
  4. If your application is approved, the bank will issue you a sanction letter.
  5. You will then sign the mortgage agreement and the bank will disburse the loan amount.
  6. The bank will register the mortgage with the relevant authorities.
  7. You will start making monthly loan repayments to the bank.
  8. Once the loan is repaid in full, the bank will release the mortgage.

Becoming a Murtahin (mortgagee) can be a complex process, but it is an important step in the home buying process. It is important to understand your rights and responsibilities as a Murtahin and to work with a reputable bank or financial institution to ensure that your investment is protected.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.


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