Equitable mortgage

An equitable mortgage occurs when a borrower delivers or pledges property or documents to a lender as security for a loan, even without formally registering a mortgage deed. It creates a legal right for the lender to claim the property if the borrower defaults, based on trust and agreement rather than formal registration. Often used in situations like giving possession of property or executing certain agreements, equitable mortgages are recognized by law but may have different enforcement procedures compared to registered mortgages. Essentially, it's a legal agreement that provides security for a loan through trust, rather than formal registration.