Necessity of Mortgage Registration under Bangladesh Law

As per Section 58 of the Transfer of Property Act, 1882 “A mortgage is 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 rise to a pecuniary liability”. Accordingly mortgage is an interest in rem with mortgage property and is not an ownership in the property by way of purchase, inheritance, gift, decree, and auction, settlement, etc.

As per section 17 of the Registration Act, 1908 the registration of the mortgage is mandatory. However, under section-68 of the Registration Act, 1908 the registrar has the authority to pass an order consistence with this Act with regard to the registration facilities. Besides, under section-69 of the Registration Act, 1908, Inspector General has the power to make rule regarding registration.

Furthermore, the benefit of the registration is that the certified copy of the mortgage can be adduced as evidence and can also be proved before the court without need for the original.