A mortgage loan or a property loan can be defined as transfer of interests in a specific property to secure the loan advanced or to be advanced in the future. In other words, when a person takes a property loan, he has to pledge some property in the form of security to the lender so that the lender has an assurance, that in case of any default in the repayment of the loan, they can recover dues from that particular property. The individual who mortgages his property against the loan is called “Mortgagor/Borrower.” While the individual/institution to whom the property is mortgaged is called “Mortgagee/Lender”.
The instrument or legal document that enumerates various terms and conditions about the mortgage is contained in the “Mortgage Deed”. It provides the lender with interest and legal rights over a property. All the rights and interests that the borrower has over the property is pledged as collateral are consequently legalized in the Mortgage Deed. It provides the lender with interest and legal rights over a property. All the rights and interests that the borrower has over the property is pledged as collateral are consequently legalized in the Mortgage Deed. This in-turn protects the lender, in case of any default in payment of the loan, he can claim his legal rights over the said property.
Features of Mortgage Deed:
1. Details of the property:Mortgage deed contains proper description of the mortgaged property, and the properties attached to the mortgaged property from all directions.
2. Name of the parties: Names addresses of mortgagor and mortgagee is specified in the mortgage deed.
3. Loan sum and Repayment:The principle amount of loan given and rate of interest thereon is given properly for future determination.
4. Insurance:In case there is any insurance over the property mortgage,this should also be specified in the mortgaged deed.
5. Default in Repayment:Mortgage deed contains the action to be taken in case of default by the mortgagor.
6. Leasing of property:Conditions as to leasing or sub leasing of the mortgaged property should be specified particularly.
Passport photo of all parties.
Aadhar card of all parties.
Utility bill of Electricity or Telephone.
PAN card of all parties.
Valid Address Proof of all the parties.
Valid Driving Licence of all the parties.
Terms and Conditions
Terms and Conditions between the parties.
Other documents will be intimated through e-mail.
A mortgage deed is a legal document that gives the lender an interest in a property when you take out a loan backed by the property. If a borrower doesn't pay back a loan in accordance with the agreement, the lender can foreclose and take possession of the land or have it auctioned off.
The two parties involved in a mortgage deed state are the buyer and the lender. The lender holds the deed for the duration of the loan.
In the case of mortgage by deposit of title-deeds the immovable property is handed to the creditor by the borrower and documents stands as security.Since mortgage by deposit of title-deeds does not require registration, no payment towards registration fee and stamp duty is necessary.
In a Simple mortgage, the property can be mortgaged without delivering its possession and the mortgager binds himself personally to pay the mortgage-money, and in the deed agrees that in case the mortgager fails to pay in accordance with the deed/contract, the mortgagee will have a right over the mortgaged property
The witness needs to be 18 or over, not a relative, not party to this mortgage and doesn't live in the property. Dependent on who your new lender is, a mortgage advisor may not be an acceptable witness.
Therefore unequivocally, to be enforceable in law, mortgage deeds require a wet signature that is physically witnessed. This in turn means that an endorsement to the integrity of a deed is required to ensure the document that is being signed is a true copy of the final deed.