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Mortgage Deed
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Mortgage Deed
A Mortgage deed is one of the most common forms of Convincing, but drafting is the most important element of this course, it begins with the names of the parties and it ends with the execution and attestation clauses, which in a literal sense means to convey or to transfer something to another person, and widely used for the transfer of movable or immovable property.
A Mortgage deed is one of the most common forms of Convincing, but drafting is the most important element of this course, it begins with the names of the parties and it ends with the execution and attestation clauses, which in a literal sense means to convey or to transfer something to another person, and widely used for the transfer of movable or immovable property. A legal document that gives a mortgage lender a lien or security interest in a piece of the mortgaged property is known as a Mortgage deed. The idea behind the creation of a mortgage deed is to give the lender protection in a legal sense, in case there is a default in repayment of the loan on the mortgaged property. The lender may after the expiry of a specified time, may use his foreclosure right to sell off the mortgaged property to get his repayment redeemed.
According to Section 58(a) 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 performance of an engagement which may give rise to a pecuniary liability.”
“The transferor of the property is called the mortgagor, the person to whom the property is transferred, the transferee is called the mortgagee, the principal money and interest of which payment is secured for the time being are called the mortgage -money, and the legal instrument by which the transfer is brought into effect is called a mortgage deed.”
DOCUMENTS REQUIRED
· The property details and relevant property documents like a title deed.
· Documents to show the relationship between the parties.
· The mortgager must present address/ID proof, Tax Paid receipts, Khatha etc.
· The very purpose of a mortgage should be mentioned.
· A declaration regarding the no claim over the said property until the mortgage money is paid.
PROCEDURE TO REGISTER AND DRAFT A VALID MORTGAGE DEED:
A mortgage deed is nothing but a combination of conditions of mortgagor and mortgagee in adherence to law time being in force. The procedure for registration and documentation is mentioned here below:
The very first step is a thorough investigation to prove the ownership of true title up to 60 years, previously, which means to show title deeds.
The important stage is drafting of mortgage deed mentioning the name, address and other minute details of parties. The draft must be specific and must be duly printed on non-judicial stamp papers of value prescribed in states.
The second most important point to be covered is to mention a brief description and history of the property, along with the object of the loan—Amount and rate of interest agreed between mortgagor and mortgagee.
The contents of the deed must have words very selective and concise up to the limits and liability and to the extent what procedure is agreed between the parties with respect to the mortgage deed and nothing beyond.
The right to take possession of the property, the deed should contain a clause as to the appointment of a Receiver who may act to be a nominee of the mortgagee
Other such conditions as to lease, usage, redemption and profits must be settled indeed depending on the type of mortgage.
The last stages of registration are execution and attestation; Attestation is an essential element to every mortgage deed. The attestation then results in the execution of the deed. The attestation must be done before a notary public.
The process of Registration is compulsory and comes to an end at Sub-registrar office and it is to be made sure that stamp duty and registration charges are paid and finally must be signed in the presence of at least two witnesses.
AcreOk helps you in the process of documentation and registration of mortgage deed and the best part is that a representative of AcreOk even accompanies our customers to the sub-registrar office, making sure everything is completed and executed properly. Do what? Nothing but trust and let us get you sorted.
Frequently Asked Questions
A mortgagor is a person who borrows money for the purpose of purchasing a real property.
Mortgagee is the entity that lends money to the borrower against the security of property.
- Mortgage deed should be signed by the mortgagor
- Mortgage deed should be attested by at least two witnesses
- Registration and stamp duty should be paid as required.
- First and foremost, important thing is 'no encumbrance certificate' if you want to mortgage the property for a loan. Its gives surety that the property is free from Encumbrances.
- Original title Deeds of the property.
- PAN card and Aadhar Card details.
- Previous records.
- Proof of income
- Property tax details of part three years.
Banks prefer Registered Mortgages as the Equitable Mortgage lacks records of loans on property in the office of Sub-Registrar. In an equitable mortgage, only the lender and the borrower are aware of the mortgage/charge made on the property.
Therefore, banking institutions consider an equitable mortgage as a misleading and preferred registered mortgage.
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