Permission to Mortgage (PTM)

Permission to Mortgage (PTM) is a formal No-Objection Certificate issued by a Cooperative Housing Society to one of its members, permitting that member to mortgage their flat/unit to a bank or financial institution as security for a loan. PTM is governed primarily by Section 29(1) of the Maharashtra Co-operative Societies Act, 1960 (MCS Act) and the corresponding provisions of other state Co-operative Societies Acts. When a member of a cooperative housing society takes a home loan (or Loan Against Property), the bank requires the society's formal no-objection because the society has a superior lien on the flat under the MCS Act — meaning the society's claim for outstanding maintenance dues takes precedence over the bank's mortgage in some circumstances. Without the PTM, many banks (particularly PSU banks and large private sector banks with cautious legal departments) will refuse to disburse the loan, as the mortgage without PTM may be legally challenged later. Under Section 29(1) of the MCS Act, a member has the right to mortgage their flat to a housing finance institution (defined to include banks approved by the State Government) without necessarily requiring the society's prior consent — however, the member must inform the society and the society must record the mortgage. In practice, banks interpret this broadly and require a formal PTM letter. The society cannot unreasonably withhold or delay the PTM — it must respond within 3 months of the member's application. An unreasonable refusal or undue delay entitles the member to approach the Registrar of Co-operative Societies or the Co-operative Court for relief. The PTM letter typically confirms: (a) the member is in good standing with no outstanding dues; (b) the society has no objection to the member mortgaging the flat; (c) the bank's security interest is noted in the society's records; and (d) the society will not exercise any prior lien over the flat without notifying the bank.