transfer of lease mortgage or charge

Apartment Lease Takeovers: What Are They and How Do They Work?

By Lilly Milman

Aug 04, 2023

So, you signed a one-year lease on a place — and now, whether it’s because of a change in work, finances, or lifestyle, you need to move out. What should you do?

Most apartment leases include a clause that requires renters to pay a fee or penalty for breaking the lease , and the consequences can go even further than your wallet. If you need to break your lease and you were behind on payments, you could be taken to court by your landlord or your credit score can take a hit. Your landlord may also become a bad reference who you won’t want to reach out to in the future.

If you want to avoid breaking a lease, you have a few options — like transferring your lease to a new tenant via a lease takeover. In this guide, we answer all your questions about lease takeovers, how they work, and how you execute them correctly.

What is a lease takeover?

A lease takeover is a legal transfer of a lease from one tenant to another. It’s one way to leave an apartment without having to pay a lease-breaking fee. It requires you to find a new tenant, who, once approved by your landlord, will sign a document accepting that they are now responsible for your prior rental unit.

What is the difference between a lease takeover and a sublet?

While they might seem similar, a lease takeover and a sublet or sublease have some important differences. When you execute a lease takeover, you are transferring your rental to a new tenant, and you will no longer have any claim to the unit. If you sublet your room or apartment to a new tenant, then you are allowing them to live in and pay for the unit, but the landlord can hold you personally responsible for following all the terms of the lease — including paying the remaining rent if your subletter defaults on payments. In a sublease, the original tenant’s name remains on the existing lease, and the new tenant signs a separate subletting agreement (rather than a new lease).

Not all leases allow for takeovers or sublets, so you will have to carefully read your lease terms to deduce whether or not you’d be allowed to do either when intending to move out. Both also must be approved by your landlord. While they can be risky, they can also be easy ways to find a short-term rental.

How do lease takeovers work?

There’s a few steps to properly completing a lease takeover, where you are fully let off the hook for the terms of your original lease.

1. Get your property manager or landlord’s permission.

Even if your lease allows for a lease takeover, you will want to loop your landlord into the process as soon as possible. There’s a chance your landlord will let you break your lease without a fee, or that they’ll want to find a replacement tenant on their own or with the help of a trusted leasing agent. If you want to keep your landlord as a reference for future apartments, you’ll also want to stay on good terms with them — and communication and transparency are fundamental to good tenant-landlord relationships. Landlord approval will also be required to get the new tenant signed onto a new rental agreement, so you will not be able to avoid letting your landlord know about the transfer down the line.

If your landlord is not giving you permission to transfer your lease, check local laws or state laws and see if you can find anything that would require them to let you out of your lease without a fee.

2. Start looking for a tenant

Once you’ve gotten your landlord’s consent, it’s time to find a new renter. In most cases, the departing tenant will need to find a new tenant on their own. The prospective tenant will need to go through the same application process that you did — filling out a rental application, going through a background check and credit check, paying a security deposit, etc. — so if you want to ensure the lease takeover goes through, do a little vetting to find someone who is responsible and will be a good future tenant.

3. Write a lease transfer agreement.

This is also called an assignment of lease form. Look up a template online and make sure there is a clause stating that you are no longer responsible for fulfilling the terms of the lease after the new tenant moves in. This contract should also include your name, the new tenant’s name, your landlord’s name, the address of the unit, the monthly rental payment, and any other clauses that you and your landlord see fit. You will need to get this contract signed by your new tenant and your landlord, and as the current tenant, you will need to sign it yourself

Are there fees associated with lease takeovers?

If your original lease agreement did not allow for lease takeovers, then you may have to pay a lease-breaking penalty or forfeit your security deposit. If your landlord does allow takeovers but decides to clean and repair your unit in between tenants, they may also withhold part of your security deposit in the event that they need to fix damages to the unit that you caused past normal wear and tear.

However, you will be released from owing your landlord rent after the new tenant moves in, as long as you were in good standing with your rent payments up until that point.

How do you find apartment lease takeover opportunities?

A lease takeover can be one way to get into an apartment complex or building that rarely has openings. If you are looking for a lease takeover, you can try searching on housing groups online on platforms like Facebook, Facebook Marketplace, and Craigslist. You can also put out a call on social media. Just make sure you complete a walkthrough of the potential property before signing any paperwork; you’ll want the unit to be in good condition, the roommates (if there are any) to be a good fit for you, and the landlord to be responsible. Always do your due diligence before taking over someone else’s lease.

The Bottom Line

A lease takeover (also called a lease transfer or assignment) is one way to get out of an apartment before the time period of your original lease is up. If your landlord allows for takeovers, then it can be a way of avoiding any lease-break fees and releasing yourself of lease obligations — thus opening you up to sign a new lease for a new apartment elsewhere. Just make sure you do your due diligence while writing up any lease assignment agreements, finding new tenants, or moving into new apartments through a lease takeover.

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Purpose of Mortgage and Charge

Difference between Mortgage & Charge and Mortgage & Lease

Difference between Mortgage & Charge and Mortgage & Lease:

Difference between Mortgage and Charge:

Mortgage is nothing but a legal agreement by which a bank, building society (creditor), etc lends money at interest in exchange for taking title of the debtor’s property, with the condition that the conveyance of title by the debtor to the creditor becomes void once the debt is fully paid off.

A charge is an interest or a right which is created over an asset or a property. It can be either on immovable property like land or building or on movable property like a car, gold etc.

In Mortgage, the purpose is to transfer the ownership of immovable property to the lender.

While under Charge, there is only security purpose to the lender.

3.Creation:

The mortgage is an agreement between two parties, (i.e. the lender and the borrower) the borrower gives assurance to the lender to transfer the right to the immovable property for the security purpose.

While Charge is created by following law or concerned parties. The charge must be created against an immovable property which can be a current or future property belonging to the borrower. A charge cannot be created if the immovable property is not owned by the person from whom the payment is due.

4.Registration :

The Mortgage is Registered under the Transfer of Property Act, 1882 that is the Mortgages requires the Registration under the Act. While, on the other hand, charge doesn’t require any Registration.

5.Subject-Matter:

In Mortgage, subject matter is only immovable property that is movable properties are not a part and parcel of Mortgage. While, on the other hand, Charge is created on Movable Property.

6.Limitation:

Mortgage on Immovable property is created for a fixed time that the period which is mentioned under the Mortgage deed. On the other hand, there is no fixed time period for the creation of charge, it can be created for infinite time.

Difference between Mortgage and Lease:

While a lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset. Property, buildings and vehicles are common assets that are leased. Industrial or business equipment is also leased.

While under a lease agreement is a contract between two parties, the lessor and the lessee. The lessor is the legal owner of the asset; the lessee obtains the right to use the asset in return for regular rental payments.

Under Mortgage, the mortgaging bank has an interest - and a primary lien - on the property; it is technically of the borrower. He owns it. His name is on the deed. While Lease, is merely renting of property. Lessees do not own it and the deed does not have name on it.

4.Consideration:

In Mortgage consideration in terms of Mortgage money is given. While on the other hand, in Lease consideration in terms of Lease Rent is given.

5.Essential Documents :

The terms and condition of the Mortgage is prescribed under “Mortgage deed.” While on the other hand, all the terms and conditions of the Lease are given under the deed known as “Lease Deed.”

6.Rights Assigned:

If borrower so decide, he can sell a mortgaged property. The mortgage balance will be paid off at the closing transaction, but the right to sell is borrower’s alone. And once the mortgage is paid, the bank's interest in the property ceases to exist, so if borrower pay off the mortgage he own the property free and clear, although he will still have to pay property taxes.

But on the other hand, lessee cannot simply decide to sell a property because it is merely a lease. He can, perhaps, sell a remainder interest in a long term lease, without the property owner's consent, as long as the wording of the lease conveyed that right to Lessee.

Posted By: Adv. Poonam R. | Posted on: May 31, 2020 | Category: Property Laws | Tag: Difference between Mortgage & Charge and Mortgage & Lease Mortgage & Charge Mortgage & Lease Difference between Mortgage and Charge Meaning of Mortgage and Charge Purpose of Mortgage and Charge creation of Mortgage & charge Registration of Mortgage and Charge Limitation of Mortgage and Charge Difference between Mortgage and Lease Meaning of Mortgage and Lease What is Purpose of Mortgage and Lease Essential Documents for Mortgage and Lease What is rights assigned about Mortgage and Lease

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What Is a Transfer of Mortgage?

How a transfer of mortgage works, special considerations for transfer of mortgage, the bottom line.

Personal Finance

Transfer of Mortgage: What it Is and How it Works

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.

Lea Uradu, J.D. is a Maryland State Registered Tax Preparer, State Certified Notary Public, Certified VITA Tax Preparer, IRS Annual Filing Season Program Participant, and Tax Writer.

Transfer of mortgage is a transaction where either the borrower or lender assigns an existing mortgage (a loan to purchase a property—usually a residential one—using the property as collateral) from the current holder to another person or entity.

Homeowners who are unable to keep current on their mortgage payments may seek a transfer so that they do not default and go into foreclosure. However, not every mortgage is transferable. Here's how a transfer of mortgage works, and how to tell if your mortgage allows this strategy.

key takeaways

A transfer of mortgage is the reassignment of an existing mortgage from the current holder to another person or entity.
Not all mortgages can be transferred to another person.
If a mortgage can be transferred, the lender has the right to approve the person assuming the loan.
Many mortgage lenders often include a due-on-sale clause in their loans that prohibits a home seller transferring a mortgage to a buyer.

A transfer of mortgage lets a buyer take over the current homeowner's mortgage, assuming the same terms and conditions as they take over responsibility for payments. If your mortgage allows it, this strategy can help you avoid foreclosure, but it can have advantages for the new mortgage owner as well.

For one, the new mortgage owner may want to take on an older mortgage because such a transfer could let them take advantage of previous interest rates if they are lower than the current market rates. Although the new mortgage owner may have to undergo a credit check by the lender. .

A transfer of the mortgage, if completed successfully without challenge or stipulations, would not change the terms or length of the loan. The new mortgage owner would only be responsible for the remaining outstanding balance. Through a transfer of the mortgage, a buyer might also avoid having to pay closing costs associated with a new mortgage.

Many mortgages are not eligible for transfer . Mortgages that are eligible are considered "assumable." In order to transfer a mortgage, the mortgage lender will typically need to verify that the person or entity that will assume the loan has adequate income and credit history to be able to make payments in a timely manner.

If you are not allowed to transfer a mortgage due to the loan's underwriting, you may need to explore other options to avoid foreclosure . For example, you could work with your lender to see if they will agree to other payment arrangements, such as a temporary suspension of your payment obligation.

Another option to avoid foreclosure is to sell the home and have a potential buyer, colleague, family member, or another entity agree to make up any difference between the home's sale price and the unpaid loan balance.

Lenders who want to deter a transfer of mortgage might include a clause in the mortgage that requires the remaining balance of the loan to be due on the sale of the property.

This due on sale clause ensures that when homeowners sell their houses, they cannot transfer the mortgage to the buyer (which could play a key part in a homebuyer's making an offer, especially if the mortgage interest was lower than the current market rates). These clauses in effect require the seller to repay the full outstanding balance on the loan, perhaps with the sale proceeds, and likewise compel the buyer to take out a new mortgage to make the purchase.

Under the 1982 Garn-St. Germain Act , lenders cannot enforce the due-on-sale clause in certain situations even if ownership has changed.

You can potentially avoid triggering a due-on-sale clause by transferring the mortgage to an immediate family member, or to a spouse from whom one is legally separated or divorced.

Further, the transfer may be a result of an inheritance following the death of the borrower, and the family member is moving into the home. In such an instance, the lender might not have grounds to prevent the transfer of the mortgage. If the property is transferred to a living trust and the borrower is the trust’s beneficiary , the mortgage usually can also be transferred as well.

Can You Add a Co-Borrower to Your Mortgage?

Once you have a mortgage on your own, you cannot add a co-borrower without refinancing the loan. Many mortgage lenders allow co-borrowers, but some may not. The requirements for a home loan will vary by lender.

What Types of Mortgages are Assumable Mortgages?

Assumable mortgages that can be transferred to another person or entity may include Federal Housing Authority (FHA) loans, U.S. Department of Agriculture (USDA) loans, and Veterans Affairs (VA) loans. Conventional mortgages backed by Freddie Mac or Fannie Mae are generally not assumable.

What Is an Unofficial Transfer?

An unofficial transfer is not a legal arrangement. In this case, the original homeowner continues to make payments to their mortgage lender, but they receive payments from another party to help them make the payments.

Whether you can transfer a mortgage to another party will depend on what type of mortgage you have and the lender's standards. Most conventional mortgages backed by Fannie Mae and Freddie Mac are not eligible for mortgage transfers. Before you go forward with this strategy of avoiding foreclosure, consider alternatives such as working with your lender or requesting forbearance.

U.S. Department of Housing and Urban Development. " Assumptions ."

Congress.gov. " H.R.6267 - Garn-St. Germain Depository Institutions Act of 1982 ."

United States Department of Agriculture. " Chapter 2 - Overview of Section 502 ."

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Key Differences

Know the Differences & Comparisons

Difference Between Mortgage and Charge

The basic purpose of creating a charge is to gain financial assistance from the lending institution. There are many students, who juxtapose charge and mortgage, but they are different. The former is just a collateral, for the payment of the amount due, whereas the latter is the transfer of interest in the asset, as collateral. To know some more important difference between charge and mortgage, you need to check out the article given below.

Content: Mortgage Vs Charge

Comparison chart, definition of mortgage.

The mortgage can be defined as the transfer of interest, in a particular immovable asset such as building, plant & machinery, etc. in order to secure payment of the funds borrowed or to be borrowed, an existing or future debt from the bank or financial institution, that results in the rise of pecuniary liability.

It is something in which special interest in the property mortgaged, is transferred by the mortgagor in favor of the mortgagee, so as to assure the payment of money advanced. The ownership of the property remains with the mortgagor (borrower/transferor), but the possession is transferred to the mortgagee (lender/transferee). When the mortgagor does not make payment in time, the mortgagee can sell the asset, after giving a notice to the mortgagor.

Types of Mortgage

Definition of Charge

By the term ‘charge’ we mean, a right created by the borrower on the property to secure the repayment of debt (principal and interest thereon), in favor of the lender i.e. bank or financial institution, which has advanced funds to the company. In a charge, there are two parties, i.e. creator of the charge (borrower) and the charge-holder (lender). It can take place in two ways, i.e. by the act of the parties concerned or by the operation of law.

When a charge is created over securities, the title is transferred from the borrower to the lender, who has the right to take possession of the asset and realize the debt through legal course. The charge on various assets is created according to their nature, such as:

On Movable stocks: Pledge and Hypothecation
On Immovable property: Mortgage
On Life such as insurance policy: Assignment
On Deposits: Lien

There are two types of charge:

Types of Charge

Fixed Charge : The charge which is created on ascertainable assets, i.e. the assets which do not change their form like land and building, plant and machinery, etc. is known as fixed charge.
Floating Charge : When the charge is created over unascertainable assets, i.e. the assets which change its form like debtors, stock, etc. is called floating charge.

Key Differences Between Charge and Mortgage

The difference between charge and mortgage can be drawn clearly on the following grounds:

The term mortgage alludes to a form of charge, in which the ownership interest in a particular immovable property is transferred. On the other hand, Charge is used to mean the creation of right over the assets in favor of the lender, for securing the repayment of the of the loan.
The mortgage is created out of the act of the parties concerned, whereas charge is created either by the operation of law or by the act of the charger holder and charge creator.
A mortgage requires compulsory registration under the Transfer of Property Act, 1882. Conversely, when the charge is created as a result of the act of the parties concerned, registration is must, but when the charge is created by operation of law, no such registration is needed at all.
The mortgage is for a specified term. Unlike charge, which continues forever.
A mortgage carries personal liability, except when it is specifically excluded by an express contract. As against this, no personal liability is created. Nevertheless, when the charge comes into effect due to a contract, then personal liability may be created.

By and large, the creation of charge provides security to the lender that the amount lent to the borrower will be repaid. On the other hand, in mortgage, the borrower is bound to pay the mortgage money or else the amount will be realized by selling the asset, so mortgaged, but only by order of the Court, in a suit.

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Transferring a mortgage: How it works

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Key takeaways

A mortgage transfer is when another person or an entity takes over your existing mortgage.
Most mortgages are not transferable, but lenders may approve a transfer in a few situations.

In most circumstances, a mortgage can’t be transferred from one borrower to another. That’s because most lenders and loan types don’t allow another borrower to take over payment of an existing mortgage.

In some cases, though, a mortgage transfer is necessary and allowed, such as in the event of a death, divorce or separation, or when a living trust is involved.

What is a mortgage transfer?

A transfer of a mortgage is when a borrower reassigns an existing home loan to another person or entity.

“In essence, this transfers all responsibilities associated with the mortgage and lien on the property to somebody new,” says Rene Segura, head of consumer lending for FBX, the banking division of Informa Financial Intelligence, based in Dallas.

This transfer, or assignment, is usually only allowed when the mortgage is assumable , says Rajeh Saadeh, a Somerville, New Jersey-based real estate attorney. When transferring an assumable mortgage, the new borrower agrees to make all future payments at the original interest rate. The transfer typically severs any legal obligations the original borrower has to the loan.

How a transfer of mortgage works

When you transfer a mortgage, another person assumes the financial responsibility of repaying the outstanding loan balance, under the same terms and conditions. The monthly payment, loan length and interest rate will remain the same once the mortgage is transferred to the new borrower. After the successful transfer of a mortgage, the original borrower is usually relieved of any financial obligations for repaying the loan.

Transferring a mortgage has benefits for both the original borrower and the new borrower. For example, transferring a mortgage can help the original borrower avoid foreclosure if they’re unable to continue paying their loan. For the new borrower, assuming an existing mortgage can potentially help them get a better interest rate than what’s offered in the current market and avoid the closing costs required with a new mortgage.

Can I transfer my mortgage to another person?

The short answer is yes, you can transfer your mortgage to another person, but only under certain circumstances. To find out if your mortgage is transferable, assumable or assignable, contact your lender and ask.

“Most lenders would prefer not to do a loan transfer, as it doesn’t benefit them in any way unless the buyer is at risk of being in default,” says Dustin Singer, a real estate agent and an investor in Pittsburgh.

Make no mistake: Most mortgages are not transferable from one borrower to another. That’s true of conventional loans , which are not government-backed (meaning they’re not an FHA, VA or USDA loan), as well as conforming loans that meet funding criteria for Fannie Mae and Freddie Mac.

“These types of loans tend to use a due-on-sale clause , which requires a loan to be repaid in full or conveyance of the full interest in a property to allow the mortgage transfer,” says Segura. “In other words, the loan must be fully repaid, and a new mortgage would need to be executed to achieve a transfer.”

Loans that are usually assumable, meaning you can transfer them in some cases, include:

Keep in mind there are exceptions to this rule, so not all loans will be transferable.

“ FHA loans are typically assumable but depend on the current state of the loan and the creditworthiness of the new borrower at the time of attempted transfer,” says Segura, adding that to complete the transfer, the new borrower would have to go through the application process and may need to have a property appraisal done, as well.

For VA loans , this same process applies, but only if the loan closed before March 1, 1988. VA loans closed after that date may require approval by the lender or loan servicer.

USDA loans may also be transferable pending lender approval.

Exceptions to the rule

Even if your mortgage has a due-on-sale clause and isn’t assumable, there are certain circumstances under which your lender may approve a transfer. These include:

Death of a spouse, joint tenant or relative
Transfers between family members, including the borrower’s spouse or children
Divorce or separation agreements in which an ex-spouse continues to live in the home
Living trust arrangements in which the borrower is a beneficiary

For these mortgage transfers to work, the new borrower needs to be added to the property’s deed, the deceased owner needs to be removed from the deed or a spouse relinquishing ownership must sign a quitclaim deed.

When a mortgage transfer makes sense

There are several situations when transferring a mortgage might make sense. Some of those scenarios include:

A family member has an ownership stake in the home: If an immediate family member has an ownership stake in the property, you might transfer the mortgage into their name.
A family member is better suited financially to take on the loan: Transferring a mortgage can be a good solution if you have a family member who is in a better financial position to repay the loan.
The original borrower has passed away: If the original mortgage borrower dies , it makes sense to transfer the loan to a relative or survivor who has the ability to pay it back.

“All of these scenarios are still on a case-by-case basis in which the lender will need to approve the transfer,” says Segura.

“Many people try to assume mortgages so they can take advantage of lower interest rates than what they would qualify for today,” says Than Merrill, founder of FortuneBuilders in San Diego.

How to transfer a mortgage

To learn how to transfer ownership of a house with a mortgage, you’ll need to talk to your lender and see if your mortgage qualifies for a transfer. Here’s how the process might look:

Contact your lender. Before doing anything else, reach out to your lender to check that your mortgage is transferable.
Consider legal representation. Transferring a mortgage can be complicated. If you’re nervous about doing it alone, you can hire an attorney to help you navigate the process.
Begin the transfer process. After confirming your eligibility, you can work with your lender to start the transfer. Depending on your loan and lender, this can include completing paperwork and verifying that you’re current on your payments. The lender will also assess the new borrower’s credit profile.
Complete the transfer. Mortgage transfers aren’t instant. Until yours is approved, don’t forget to keep making loan payments and comply with any follow-up instructions sent by your lender.

What are transfer taxes?

Some state and local governments impose a one-time real estate transfer tax that must be paid any time a property is transferred from one person to another. In many cases, the seller must cover transfer taxes, but this varies by jurisdiction. The amount of the tax also depends on where you live, but it’s usually either a flat rate or a percentage of your home’s sale price.

Alternatives to a mortgage transfer

Instead of transferring a mortgage, consider these alternatives:

Buying the home from the original borrower : The person who wishes to assume the loan applies for a new mortgage and buys the home from the previous borrower. However, this means dealing with new loan terms and interest rates .
Adding a second borrower : This option involves adding the new borrower to the loan. However, it won’t remove the original borrower, so they’ll remain liable for the debt.
Refinancing and adding a borrower : Refinancing your mortgage and adding a second borrower lets you adjust the loan’s terms and rate. It may be easier to add another borrower by refinancing. However, this also has the drawback of not freeing the original borrower from their liability for the loan.
Unofficial transfers : With this option, you can have the new borrower send payments to the original borrower, who then pays the loan. However, this is a bad idea because the initial borrower is liable for the debt and has little recourse if the new borrower stops paying. It may also break the terms of the mortgage, especially if the original borrower moves out.

Can I take over a mortgage from my parents?

Do i have to notify my lender of the transfer, why would a bank transfer a mortgage, bottom line.

Transferring a mortgage can simplify things: The new borrower wouldn’t have to apply for a new loan, pay for closing costs or possibly risk paying higher interest rates. However, many kinds of mortgages aren’t transferable, and if yours is, you’ll have to prepare for a lot of paperwork to make it official.

“The mortgage transfer will require a lot of documentation, with several new guidelines and criteria on the loan,” says Segura. “Read all documents thoroughly for any potential changes on the mortgage rights.”

Also, keep in mind that a mortgage transfer doesn’t change the debt obligation on the loan; the new borrower still needs to pay off the same outstanding balance.

If in doubt, consider discussing this option with a real estate attorney and skilled financial professional before proceeding.

Article sources

We use primary sources to support our work. Bankrate’s authors, reporters and editors are subject-matter experts who thoroughly fact-check editorial content to ensure the information you’re reading is accurate, timely and relevant.

“ Chapter 7. Assumptions ” U.S. Department of Housing and Urban Development. Accessed on Jan. 24, 2024.

“ Rights of VA Loan Borrowers ” U.S. Department of Veterans Affairs. Accessed on Jan. 24, 2024.

“ Chapter 2: Overview of Section 502 ” U.S. Department of Agriculture. Accessed on Jan. 24, 2024.

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Property Law

Types of Transfers governed by the Transfer of Property Act

July 6, 2020
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Prachurya Sahu | Symbiosis Law School, Pune.

Table of Contents

Introduction

The Transfer of Property Act of 1882 is the overarching legislation which governs the transfer of property, both movable and immovable. Chapter II of the Act, from Sections 5 to 37 apply generally to movable and immovable properties. The rest of the Act focuses on transactions between only immovable property, detailing various procedures, methods, approval of transfers etc.

The Act governs only those transactions which result from the mutual conduct of the parties. It doesn’t cover transfers via inheritance, insolvency or forfeiture.

The Act defines a transfer as an “act by which a living person conveys property, in present or in future, to one or more living person or to himself and one or more other living persons” [1] “Transferor” refers to the one who transfers the property while the person who receives such property is called the “transferee.” A “living person” has been meant to include within its purview not only individuals but juristic persons such as a company or association or body of individuals [2] , whether incorporated or not, without affecting any law made specifically for transfer of property within these groups. [3] Competency is the next important essential for a valid transfer. The Act provides that a person can transfer property only if he is competent to contract and has a valid title to the property or authority to transfer. [4] Competency to contract manifests with a person who is of majority in age, has a sound mind and is not otherwise disqualified under any law. [5]

Types of Transfer

The Act governs five types of transfers:

Section 54 of the Transfer of Property Act defines sale as “is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.”

A transfer of ownership refers to the transfer of all rights and interests in the properties which are possessed by the transferor to the transferee with free consent. [6] Furthermore, the subject matter of a sale must always be immovable property which is identifiable. This means the identity of the property must be undisputed. [7] All sale of movable property is under the purview of the Sale of Goods Act, 1930. [8]

Price here only refers to the consideration of money [9] , not of other things in value. Any other type of consideration would characterise that transaction as an exchange. [10] The words “price paid or promised or part-paid and part-promised” indicate the importance of price as an ingredient in the transaction of a sale. It lays down that the payment of the whole price is not necessary for the execution of valid sale deed i.e. part payment is also recognized for a sale to be complete. [11]

As stipulated in the Transfer of Property Act, the two recognized mode of transfer is- (1) Registered instrument, the process of which is mentioned in the Registration Act, 1908; and (2) Delivery of possession. No other way is legally recognized. [12] Any transfer that takes place by operation of law such as a judgment or order of the court are beyond the scope of Section 52.

Section 58 of the TPA defines mortgage as “the transfer of an interest in specific immovable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability.”

There are various kinds of mortgages available where the basic element is the transfer of some partial interest of the transferor as opposed to the transfer of all interests in cases of sale. [13] However what changes with different mortgages is the nature of this interest. In cases of simple mortgage, the power of sale is transferred. In an usufructuary mortgage, the right of possession and enjoyment of the property is transferred. [14] A conditional mortgage, the right of ownership subject to a condition is transferred.

Another important element of a mortgage is that the right of interest created in the property can be attached to the right to recover the debt. [15] When such a debt is completely paid, the property can revert back to the actual owner.

The main purpose behind such a transaction is to secure a debt. This way if the mortgager forfeits on his debt, the interest so transferred can be used by the mortgagee to recover such debt.

Section 105 of the TPA defines lease as “is a transfer of a right to enjoy immovable property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.”

Essentially it is a transfer of right of enjoyment of an immovable property to someone who so accepts in return for prior payment or periodic flow of valuable consideration. The person who transfers such a right is called the lessor and the person. The price already paid is called the premium and the periodic payment of consideration is called rent.

In contracts of leases, the nature of relationship between the lessor and lessee imply the right of possession of land to lie with the lessee. [16] Such lessee/tenant is entitled to remain in possession of the property till the lease is lawfully terminated as long as the rent is being paid timely. [17]

The contract also allows for a lessee to further sub-let the leased property in return for rent. While the term sub-let is not exactly defined within the TPA but the definition of “lease” can be adopted for it. The fact that the lessor is itself a lessee to another person and therefore does not have the complete interest of the property does not invalidate or change the transfer between the lessee and sub-lessee. [18]

Section 118 of the TPA defines exchange as “ When two persons mutually transfer the ownership of one thing for the ownership of another neither thing or both things being money only, the transaction is called an “exchange.” Further it also states, “A transfer of property in completion of an exchange can be made only in manner provided for the transfer of such property by sale”

In general parlance, the word “exchange” refers to give or transfer for an equivalent [19] In law, an exchange is effected in the same way as a sale. [20] This means that the exchange of goods are subject to the manner laid down in Section 54 of the TPA with regards to the registration or delivery of possession. [21] Therefore, for an exchange to be valid, there must be physical delivery of the property to the parties and such parties to the exchange are vested with the same rights and duties as between a seller and a buyer. [22]

An exchange is a barter of goods, therefore either property to be exchanged cannot be money as it would simply denote a sale. [23]

Section 122 of the TPA deals with gift and defines it as “…the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee. Such acceptance must be made during the lifetime of the donor and while he is still capable of giving, If the donee dies before acceptance, the gift is void.”

Gift, essentially is the transfer of existing property in the favour of another person without any consideration or expectation of the same. The words “during the lifetime of the donor” shows that gift, as envisioned by the TPA deal with inter vivos gift i.e. a gift between people who are alive.

The main tenets that make a gift valid is that it is voluntarily made by the transferor, made without consideration or apprehension of the same and it is accepted by the donor within his lifetime. Conditional gifts are also permitted as long as the condition is not prohibited by law.

In cases of gifts, the maxim “ qui sentit commodum, debetet et sentire onus” is of prominence which lays the principle for onerous gifts. Onerous gifts are those within which subsists a burden or obligation. The maxim as well as Section 127 of the TPA lay down that a gift can be accepted in its entirety, and not to the exclusion of the obligation.

[1] Section 5, The Transfer of Property Act, 1882.

[2] Hindustan Lever v State of Maharashtra, (2004) 9 SCC 438, Shriomani Gurudwara Prabandhak Committee, Amritsar v. Som Nath Dass and Ors. (2000) 4 SCC 146.

[4] Section 7, The Transfer of Property Act, 1882.

[5] Section 11, The Indian Contract Act, 1872.

[6] Iqbal Singh v State of Haryana, (2011) 3 RCR (Civil) 365

[7] Ram Jiwan Rai v Deoki Nandan Rai, AIR 2005 Pat. 23

[8] Sahebram Surajmal v Purushottamlal, (1950) ILR Nag 355

[9] Ramlal v Phagua, (2006) AIR 2006 SC 623

[10] State of Madras v Gannon Dunkerley and Co (Madras) Ltd, AIR 1958 SC 560

[11] Vidhyadhar v Manikrao, (1999) AIR 1999 SC 1441

[12] Narayan Swami v Lakshmi, (1939) 48 Mad LW 959

[13] Raja Shiba Prasad Singh, AIR 1941 PC 36

[14] Prahlad v Maganlal, (1952) AIR 1952 Bom 454

[15] Rajkumari Kaushalya Devi v Bawa Pritam Singh, [1960] 3 SCR 570

[16] Saddashiv Shyama Sawant v Anita Anant Sawant, AIR 2010 SC (Supp) 798

[17] Jaswantsinh Mathurasinh v Ahmedabad Municipal Corpn, (1992) 1 SCC 5, p 12 (Supp).

[18] Mineral Development Ltd v UOI, AIR 1960 SC 1373

[19] Ram Badan v Kunwar, AIR 1938 All 229

[20] Ram Kristo v Dhankisto, AIR 1969 SC 204

[21] Debi Prasad v Jaldhar Chaube, (1945) All LJ 537

[22] Mohammadin v Asibun Nissa, AIR 2005 Jhar. 1

[23] CIT v Motor & General Stores Pvt Ltd, AIR 1968 SC 200

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property law
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Transfer of lease, mortgage or charge

Form 01TL (PDF 150 KB)

Dealing type

TL (transfer of lease or sublease)

TM (transfer of mortgage or sub-mortgage)

TC (transfer of charge)

Stamp duty - required for a transfer of lease or sublease.

Any alteration to the consideration must be marked.

Not required for a transfer of mortgage, sub-mortgage, or charge.

NOS form - required for a transfer of a Crown land tenure Term Lease or a Crown land Real Property Act lease. Panels 1, 2, 3, 4 and 5 require completion. Ignore 3A and 4 if the transfer is not for value.

Not required for a transfer of a lease, mortgage or charge.

Standard form of Caveat - prevents registration where the caveat is drawn against the lease, mortgage or charge.

Does not prevent registration where the caveat is drawn against the land.

Priority Notice noted on the Register - see Priority Notice page. NOTE: A transfer of mortgage or charge signed on or after the 22/3/2021 must be lodged electronically using an Electronic Lodgment Network (see Conveyancing Rules 8.7 and 8.8). Where a required mandated dealing is excluded from electronic lodgment or circumstances allow the Registrar General to waive electronic lodgment under Conveyancing Rules 8.7 and 8.8, the incoming dealing must be accompanied with the Conveyancing Rules Exemptions form 2021 indicating the exemption.

Minister's consent may be required for transfer of a Crown land tenure Term Lease or Crown land Real Property Act lease. Where the Minister's consent is required to lease or mortgage, consent is also required to transfer that lease or mortgage. Where the transfer is pursuant to a court order and affects a perpetual leasehold title, the Minister must be notified.

The dealing must not include any reference to the transferor or transferee being a trustee, executor or administrator for another party.

A transfer of lease affecting an expired lease will only be registered where:

the expired lease is still recorded on the register;
the lease expired less than 12 months ago or
the lease contains a current first option to renew or
is within 12 months of expiry period or within a current first option to renew term, and is accompanied by a Variation of lease extending the term.

A transfer of lease affecting a lease carried forward as a subsisting interest, i.e. 'Bk ... No. ... Lease To ...' must either:

be registered as a deed in the General Register of Deeds and a Request form 11R together with an Old System search showing the party entitled to deal with the lease must be lodged to record the interest. A change in proprietorship must be registered in the General Register of Deeds. See Baalman And Wells, Land Titles Office Practice, Lawbook Co. 2001 [390.100]. Note The Transfer of Lease form 01TL cannot be registered in this instance or
an Old System search of the leasehold title and
their qualification
that he or she has inspected all deeds since the leasehold title was created to the present time
the registered Book and No. and type of all instruments inspected to show the leasehold title has not expired and
the registered Book and No. and type of all instruments to which the leasehold estate is subject.

A notification (code ULD): 'Devolution of Lease' is entered in the Second Schedule and all further transactions affecting the lease may be lodged on a Real Property Act form and do not require further evidence of devolution.

Refer to Legal through the Senior Examining Officer in both instances.

Examination requirements for a transfer of a sublease or sub-mortgage are the same as those for a transfer of lease or mortgage.

A transfer of more than one lease, mortgage or charge involving the same transferor (e.g. the same mortgagee) and transferee is a multiple instrument. See Fees page.

Suitably modified the form may be used to:

discharge a mortgage of a lease where the mortgagee has been recorded as the lessee and the interest of the mortgagor has been protected by a Registrar General's caveat ( registration requirements ); or
transfer a mortgage of lease (including a Crown Land lease) under power of sale ( registration requirements ).

(A) The registered number of the lease, mortgage or charge being transferred must be stated.

(B) The reference to title for the land affected by the lease, mortgage or charge must be stated. In the case of a transfer of lease affecting a lease folio, the number of the lease folio only must be stated.

A transfer of lease involving part of the land may be registered. It is more common for a sub-lease to be lodged, see Baalman And Wells, Land Titles Office Practice, Lawbook Co. 2001 [550.100].

(D) The full name of the transferor must be stated and must be identical to the name of the registered proprietor of the lease, mortgage or charge as shown on the Register.

(E) The consideration is optional.

(F) A writ against the lease, mortgage or charge must be noted in the Encumbrances, or the Court must consent to the dealing, or the writ must be removed.

(G) The full name of the transferee must be stated.

For a transfer to the mortgagor, lessor or charger (annuitant) .

(H) Tenancy/shares must be stated where there is more than one lessee, mortgagee or chargee. Reference to the tenancy/shares will not be entered on the Register.

(I) The dealing must be executed by the transferor and the transferee and be witnessed, or it may be executed on their behalf as follows:

Where the dealing is a transfer of lease and the transferor or transferee is the Owners Corporation of a Strata scheme, execution must take the form as set out in Strata Schemes Approved Form 23 (PDF 128 KB). The following certificates are also required:

Strata Schemes Approved Form 13 (PDF 23 KB) and
Strata Schemes Approved Form 10 (PDF 8 KB) where the initial period is not shown as expired on the common property title.

Where the transferor or transferee is the Association of a Community, Precinct or Neighbourhood scheme, execution must take the form as set out in Community Title Schemes Approved Form 18 (PDF 20 KB). A certificate as in Community Title Schemes Approved Form 21 (PDF 20 KB) is also required.

See execution requirements for companies, witnesses etc. pages

(J) This section is to be completed where the notice of sale data (see NOS form above) has been forwarded to NSW LRS through the eNOS facility.

Staff processing information

If in order proceed with registration except for the following.

Refer to SM99 Where the dealing involves the owners corporation of a strata scheme.

Refer to SD52 Where a joint tenancy is severed.

Refer to SD31 A transfer

of a perpetual leasehold title pursuant to a court order.
of lease by National Parks and Wildlife, i.e. Kosciuszko leases
of a crown lease, e.g. a term Western Lands lease

Refer to SM98

Transfer of lease or sub-lease
Where notifications are recorded under a mortgage or charge that changes the ownership of the mortgage/charge or changes the name of the mortgagee/chargee.

Refer to SD2 A transfer:

of lease affecting a title shown in the ITS lease list.
of a retirement village lease. ( SD2 a transfer by an executor must be referred to Legal).

Refer to Legal through the Senior Examining Officer A transfer of lease affecting a Book and No. lease accompanied by evidence of devolution of the lease.

Registration procedure

Transfer of lease

TRANSACTION MOD

PRIME CODE code of lease as shown on the Register

PRIME NO. number of lease

SELECT ‘Names’

CODE (name) P, C or Q [name of all current lessees]

COPY & DELETE (SEE [number of Transfer of lease])

SELECT ‘Lease Terms’

PREMISES DESCRIPTION (See [dealing numbers of previous notifications that changed lessee] [number of transfer of lease]). [Premises description if any]

Note: Remove all previous dealings that changed lessee and add dealing numbers to the list of dealings in premises description, e.g. (See AA123456 AB456789 AC789123)

Transfer of crown lease

PRIME NO. number of lease

UCLT (Crown land lease - for NOS purposes)

ULTP (transfer of lease under power of sale)

CODE (name) P, C or Q [name of lessee or mortgagee; include all current lessees or mortgagees].

Transfer of a sub-lease

TRANSACTION MOD

PRIME CODE code of lease affected by the sub-lease as shown on the Register

PRIME NO. number of lease

SUB CODE code of sub-lease

SUB CODE NO. number of sub-lease

CODE (name) P, C or Q [name of all current sub-lessees]

COPY & DELETE (SEE [number of transfer of sub-lease])

PREMISES DESCRIPTION (See [dealing numbers of previous notifications that changed sub-lessee] [number of transfer of sub-lease]). [Premises description if any]

Note: Remove all previous dealings that changed sub-lessee and add dealing numbers to the list of dealings in premises description, e.g. (See AA123456 AB456789 AC789123)

Transfer of a crown sub-lease

PRIME CODE code of lease affected by the sublease or sub-mortgage as shown on the Register

ULT (sublease)

CODE (name) P, C or Q [name of lessee; include all current lessees]

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AFFECTED NO. number of sublease transferred.

Transfer of mortgage

PRIME CODE code of mortgage as shown on the Register

PRIME NO. number of mortgage

NEW PRIME CODE M (where no mortgagee code exists)

MC etc (where a mortgagee code exists in ITS)

CODE (name) P, C or Q where Prime Code M is selected [name of all current mortgagees]

DETAILS (See [dealing numbers of previous notifications that changed mortgagee] [number of Transfer of Mortgage]).

Transfer of charge

TRANSACTION MOD

PRIME CODE code of charge as shown on the Register

PRIME NO. number of charge

CODE (name) P, C or Q [name of all current chargees].

DETAILS (See [dealing numbers of previous notifications that changed mortgagee] [number of Transfer of Charge]).

Transfer of a sub-mortgage

PRIME CODE code of lease or mortgage affected by the sub-mortgage as shown on the Register

PRIME NO. number of lease or mortgage

SUB CODE code of sub-mortgage

SUB CODE NO. number of sub-mortgage

CODE (name) P, C or Q [name of sub-mortgagee; include all current sub-mortgagees]

DETAILS (See [dealing numbers of previous notifications that changed sub-mortgagee] [number of Transfer of Sub-Mortgage]).

Affecting a Book and No. lease with satisfactory evidence of devolution

ADD. TRANSACTION UNDR

PRIME CODE code of lease as shown on the Register

PRIME NUMBER number of lease

SUB-CODE ULD (Devolution of Lease)

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Charges when Selling or Buying Leasehold Property

When you buy, own or sell a Leasehold property, many of your rights and obligations will be set out in your lease. One of your obligations will be to make certain payments to the person or the organisation responsible for administering and managing your building. That person might be a landlord, a management company, or a managing agent instructed by the landlord or management company (referred to below as "the landlord"). The typed of payments or charges can be divided into three groups. They are:

Ground Rent

Your lease may provide for you to make regular payments of ground rent as well as service charges. Although the lease may initially oblige you to pay a fixed amount of ground rent, it may also contain a clause which allows the landlord to increase the rent in years to come. When buying a leasehold property you should always ask your conveyancer to explain if there are any rent review clauses in your lease and explain what this would mean to you in financial terms.

Service Charge

Service charges normally vary according to the amount that is spent by the landlord each year on the upkeep of the building as a whole, including for example, cleaning the communal areas, gardening, maintaining and renewing the structure of the building (including the roof), building insurance. Usually, the lease will oblige you to pay a fixed percentage or a "reasonable proportion" of that amount. You should ask your conveyancer how the service charge is calculated, what it covers and whether the landlord has any plans for expensive remedial works to be carried out to the building for which you will be responsible.

Administration Charges

The landlord is likely to make an administration charge if you ask for a service connected with the buying or selling of a leasehold property. The following are examples of these charges you may have to pay,

When you are selling

1. Sellers leasehold pack: When you are selling a leasehold property it will be your responsibility to pay the landlord's charge to provide a Sellers leasehold pack (usually in the form of a Form LPE1) to provide the leasehold information required by your buyer and their lender.

2. Licence to Assign: It is possible that your lease requires you to obtain a licence from the landlord to sell the property. This involves the landlord approving the buyer as a new owner of the property. You may have to pay both the landlord's and landlord's solicitors charges for consenting to the sale and providing the Licence.

3. Exit or Transfer Fee: A retirement flat lease may include an "exit" or "transfer fee" payable by you from the sale proceeds and expressed as a percentage of the property value.

When you are buying

1. Deed of Covenant: Some leases require a buyer to enter into a Deed with the landlord to confirm that you will be bound by the terms of the lease. The buyer has to pay this charge.

2. Notice of Assignment of Transfer and Charge: The landlord will require that a notice is sent to them notifying of the change of ownership and any mortgage lender. This is to ensure that the landlord has your contact details (these may be different from the address of the property you have purchased) for the purpose of sending you ground rent and service charge invoices, and details of works to be carried out to the building.

3. Certificate of Compliance: The landlord may be required to provide this to confirm to the Land Registry that the change of ownership requirements in the lease have been complied with.

4. Share or Membership Transfer Charge: If you are required to become a member of the Management Company then the landlord may make a charge to transfer the share or membership certificate into your name.

To ensure that you are aware of the above charges and procedures, when you are selling or buying leasehold property, you should ask your conveyancer to review the lease and property title at an early stage.

Hughes Paddison has an experienced residential property team who are able to advise on all aspects of leasehold conveyancing whether you are selling or buying. Please contact our residential property team, we will spend time discussing any queries you have concerning the leasehold property you are buying or selling, and provide you with a conveyancing quote.

The information contained on this page has been prepared for the purpose of this blog/article only. The content should not be regarded at any time as a substitute for taking legal advice.

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HOA Q&A: Is a 'capital contribution' of hundreds of dollars charged to new owners legal?

Editor’s note : Attorneys at Goede, DeBoest & Cross respond to questions about Florida community association law. The firm represents community associations throughout Florida and focuses on condominium and homeowner association law, real estate law, civil litigation, estate planning and commercial transactions.

Q: The board of my condo association, which has over 400 units, has been charging and collecting a fee of around $900 from all new owners when they buy a unit and the fee is categorized as a “capital contribution.” Is such a capital contribution allowed under the Florida Condominium Act?

HOA Q&A: I s it legal to require paying owners to pay assessments for those who don't pay?

HOA Q&A: Can someone who has power of attorney for a property sit on the board?

A: Assuming that your community is indeed a condominium association as you have stated, governed by Chapter 718, Florida Statutes, and not a homeowners’ association, which is governed by Chapter 720, Florida Statutes, then the collection of a capital contribution from new owners is not permitted. Section 718.112(2)(i), Florida Statutes, states, in relevant part, “An association may not charge a fee in connection with the sale, mortgage, lease, sublease, or other transfer of a unit unless the association is required to approve such transfer and a fee for such approval is provided for in the declaration, articles, or bylaws. Any such fee may be preset but may not exceed $150 per applicant.” As provided in the statute above, a condominium association’s ability to collect a fee from new owners is limited to those associations which are required by their governing documents to approve transfers, and the amount of such transfer fee is to be specified in such documents. Even then, such transfer fee may not exceed $150. Therefore, a condominium association may not charge a capital contribution fee of $900 for new owners. Please note that Chapter 720, Florida Statutes, governing homeowners’ associations, does not contain this same restriction.

Destiny Goede, Esq ., is an Attorney at the Law Firm Goede, DeBoest & Cross. Visit www.gadclaw.com or to ask questions about your issues for future columns, send your inquiry to: [email protected] . The information provided herein is for informational purposes only and should not be construed as legal advice. The publication of this article does not create an attorney-client relationship between the reader and Goede, DeBoest & Cross, or any of our attorneys. Readers should not act or refrain from acting based upon the information contained in this article without first contacting an attorney, if you have questions about any of the issues raised herein. The hiring of an attorney is a decision that should not be based solely on advertisements or this column.

IMAGES

Transfer Of Lease To New Owner Form
Mortgage Agreement Templates
Difference Between Mortgage and Charge (with Comparison Chart)
Lease Transfer Request Letter
Difference Between Lease and Finance
30+ mortgage settlement statement

VIDEO

The Simplest Explanation of Lease
Difference between charge and mortgage
Laws Related to Real Estate
TYPES OF MORTGAGES
What is lease under Transfer of Property Act?
Lease under Transfer of property act

COMMENTS

Transfer of lease, mortgage or charge
A transfer of lease involving part of the land may be registered. It is more common for a sub-lease to be lodged. (D) The full name of the transferor must be stated and must be identical to the name of the registered proprietor of the lease, mortgage or charge as shown on the Register. (E) The consideration is optional.
Lease Purchase Agreement: What To Know
A lease purchase agreement in real estate is a rent-to-own contract between a tenant and a landlord for the former to purchase the property at a later point in time. The renter pays the seller an option fee at an agreed-upon purchase price, giving them exclusive rights to buy the property. Both parties agree to what the purchase price of the ...
Apartment Lease Takeovers: What Are They and How Do They Work?
A lease takeover (also called a lease transfer or assignment) is one way to get out of an apartment before the time period of your original lease is up. If your landlord allows for takeovers, then it can be a way of avoiding any lease-break fees and releasing yourself of lease obligations — thus opening you up to sign a new lease for a new ...
How Do I Transfer My Apartment Lease?
3. Get it in writing. Once approved, get it in writing — type up a quick agreement, and you both can sign it. Also, bring an assignment of residential lease agreement with you for your landlord to review. It will show them that you're serious about this transfer and doing your due diligence.
Difference between Mortgage & Charge and Mortgage & Lease
6.Limitation: Mortgage on Immovable property is created for a fixed time that the period which is mentioned under the Mortgage deed. On the other hand, there is no fixed time period for the creation of charge, it can be created for infinite time. Difference between Mortgage and Lease: 1.Meaning: Mortgage is nothing but a legal agreement by ...
How to Transfer Your Lease to a New Tenant
3. Find a replacement tenant. Create an advertisement for your listing. List the rent, the number of months left on the lease, and include as many photos as possible. Make sure to specify that you're looking for someone to take over the remainder of your lease. 4. Make sure the potential tenant is qualified.
Transfer of Mortgage: What it Is and How it Works
Transfer of Mortgage: A transaction where either the borrower or lender assigns an existing mortgage (bank loan to purchase a residential property) from the current holder to another person or ...
Difference Between Mortgage and Charge (with Comparison Chart)
Comparison Chart. Mortgage implies the transfer of ownership interest in a particular immovable asset. Charge refers to the security for securing the debt, by way of pledge, hypothecation and mortgage. Mortgage is the result of the act of parties. Charge is created either by the operation of law or by the act of the parties concerned.
Transferring A Mortgage: How It Works
How a transfer of mortgage works. When you transfer a mortgage, another person assumes the financial responsibility of repaying the outstanding loan balance, under the same terms and conditions ...
Can You Transfer A Mortgage To Someone Else?
A mortgage is considered "assumable" if the loan agreement allows the original borrower to transfer their loan to someone else. In this case, the buyer of the home would simply take over the ...
How a Lease Swap Works
A lease swap is the transfer of a lease from one person to another. After the swap is complete, the new lessee becomes fully responsible for the lease, as long as the transaction meets all of the lessor's requirements. Transferring a lease is an alternative to simply ending a lease early, which could result in hefty early termination fees.
Types of Transfers governed by the Transfer of Property Act
As stipulated in the Transfer of Property Act, the two recognized mode of transfer is- (1) Registered instrument, the process of which is mentioned in the Registration Act, 1908; and (2) Delivery of possession. No other way is legally recognized. [12] Any transfer that takes place by operation of law such as a judgment or order of the court are ...
TFR-05 Transfer of Mortgage, Charge or Lease
A Transfer Lease form is used where Crown land is affected. While the whole, or a share of the interest of a mortgage, charge or lease may be transferred, all of the land secured by the instrument must be included in the transfer. A transfer reciting only one of two or more properties secured will not be registered as such a transfer would ...
Mortgage and charge of immovable property under Transfer of Property
Right to grant a lease. As per Section 65A of the Transfer of Property Act, ... Such subsequent mortgage or charge cannot be sold or foreclose without redeeming the prior mortgage or charge. Conclusion. The concept of mortgage is one of the important concepts under the Transfer of Property Act, 1882 as it helps in securing the debt to the ...
Transfer of lease, mortgage or charge
Examination requirements for a transfer of a sublease or sub-mortgage are the same as those for a transfer of lease or mortgage. A transfer of more than one lease, mortgage or charge involving the same transferor (e.g. the same mortgagee) and transferee is a multiple instrument. See Fees page. Suitably modified the form may be used to:
Can the Association charge Transfer Fees for Sale or Lease of Units
In Florida, The Condominium Act, under Fla. Stat. 718.112(2)(i) specifically states that "no charge shall be made by the Association or any body thereof in connection with the sale, mortgage, lease, sublease, or other transfer of a unit unless the association is required to approve such transfer and a fee for such approval is provided for in ...
Charges when Selling or Buying Leasehold Property
1. Deed of Covenant: Some leases require a buyer to enter into a Deed with the landlord to confirm that you will be bound by the terms of the lease. The buyer has to pay this charge. 2. Notice of Assignment of Transfer and Charge: The landlord will require that a notice is sent to them notifying of the change of ownership and any mortgage ...
A comparative study between charge and mortgage
As provided in the TOPA, there are various instruments to transfer the property viz sale, lease, gift, mortgage, charge etc. through which a property can be transferred by its owner to another person. Transfer of immovable property by each of the aforementioned modes has its own significance, advantages, and disadvantages.
PDF Local Church Property Sale, Transfer, Lease and Mortgage Checklist
1. _____ The charge conference must approve sales, transfer, lease of 30 days or more and mortgage of real property. The district superintendent, in consultation with the church, schedules the time of the meeting of the charge conference (¶245.4). 2. _____ The notice of the proposed sale, transfer, lease or mortgage of property and the
PDF Local Church Property Sale, Transfer, Lease and Mortgage Checklist
2. Charge conference approval of the proposed sale, transfer, mortgage, or 30+ day lease. The resolution is presented at the charge conference meeting and requires a majority vote of the members present and voting. ¶ 2540.2. If the charge consists of two or more local churches, the local church conference provisions in ¶ 2525 should be followed.
HOA Q&A: Is a 'capital contribution' charged to new owners legal?
Section 718.112(2)(i), Florida Statutes, states, in relevant part, "An association may not charge a fee in connection with the sale, mortgage, lease, sublease, or other transfer of a unit unless ...
Register of Overseas Entities
Accordingly, overseas entities cannot buy, sell, transfer, lease, mortgage or charge property in the UK unless they have registered. There are currently over 28,000 entities on the Register. The Register is publicly available and can be searched using the advanced search function on the " Find and Update Company Information " service at ...

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