A mortgage is a security for loan payment, and this is usually land. Before completing a mortgage transaction, several steps have to be taken to insure that it is viable as outlined below;

Obtain the duplicate certificate of title;

  1. Search for the land registry to ascertain ownership of the land;
  2. Carry out the valuation of the land to ascertain the market value;
  3. All due diligence required for one to purchase land should be carried out, i.e., visiting the land physically, consulting the neighbors, consulting the National Environmental Management Authority (NEMA). All these minimize the instances of fraud.
  4. After that, draft a mortgage deed and have it duly signed by both parties
  5. Pay the stamp duty of 0.5% and the fee for lodgment of a mortgage as indicated in the Regulation of title (fees) Amendment Rules 1998
  6. Fill in the form in the 11th schedule to the Registration of Titles Act per section 115 of the Registration of Titles Act.
  7. The mortgage deed is then lodged in the land registry together with proof of payment of relevant fees.
  8. Ensure that the mortgage is entered onto the title as an encumbrance.