Memorandum of Transfer (MoT) for land with indivual title

This Agreement is prepared by the loan lawyer. Upon signing the Facilities Agreeemnt, borrower also signs memorandum of Transfer (MoT) with bank to charge land to bank as collateral for loan. Once charged, technically but not legally, the ssinged land belings to the bank. With the bank holding the title deed they can use the land as they see fit in tin the event of borrower defaulting on repayment, meaning foreclosure of charge. USually bank will sell the property by auction to recover loan. When borrower ( Purchaser) eventually pay up the loan ,lawyer to preapre Discharge of Charge ( DoC) to free title deed from bank . Purchaser owns and possesses title deed now.
- If land is charged to bank but charger does not need loan immediately, can apply to land office for " postponement of a charge' in Form 16 C.
- Cannot transfer land to minor - under 21 as in Age of majoruty Act. If transgers, need to appoint a trsutee by a trust deed.