Fillable Printable Deed of Simple Mortgage

Deed of Simple Mortgage

DEED OF SIMPLE MORTGAGE

THIS DEED OF SIMPLE MORTGAGE is made at ______________ this _____

day of ________ 200__

between

(1) _______________, son/daughter of _____________ aged about ______ years

resident at ___________________(hereinafter referred to as the ‘Mortgagor which

expression shall unless repugnant to the context or meaning thereof, be deemed

to mean and include his/her legal heirs, executors and administrators) of the one

part.

OR (applicable in case of a couple )

_________________, son/daughter of _________________ aged about _____ years

and his/her spouse __________________, son/daughter of ________________

aged about _____ years both residing at ___________ (hereinafter referred to as

the ‘Mortgagors’ which expression shall unless repugnant to the context or

meaning thereof, be deemed to mean and include their legal heirs, executors and

administrators) of the one part; and

(2) ____________________ [Housing Finance Company (HFC)], a company

within the meaning of the Companies Act, 1956 (1 of 1956) and having its

registered office at ________________________ (hereinafter referred to as the

‘Mortgagee’ which expression shall, unless repugnant to the context or meaning

thereof, be deemed to include its successors in interest and assigns) of the other

part;

OR (in case of a Bank)

[ x ] a banking company within the meaning of the Banking Regulation Act,

1949 and having its registered /head office at [ x ] and a branch office at

______________ (hereinafter referred to as the ‘Mortgagee’ which expression

shall, unless repugnant to the context or meaning thereof, be deemed to include

its successors in interest and assigns) of the other part;

WHEREAS:

(A) The Mortgagor is absolutely seized and possessed of or otherwise well

and sufficiently entitled to the land and premises bearing municipal

survey no. ________ lying being and situate at ___________________

within the city/village limits of [_____] registration sub-district [_____]

and district [____] (hereinafter referred to as the “ Residential Property”)

more particularly described in the Schedule hereunder written;

(B) By a loan agreement dated ___________ (the “Loan Agreement”) made

between the Mortgagor as the borrower of one part and the Bank as the

lender of the other part, the Mortgagee has agreed to lend and advance to

the Mortgagor and the Mortgagor has agreed to borrow from the

Mortgagee the amount of Rs. ____________ (Rupees _____________) (the

“Loan”) upon the terms and conditions set out therein against the security

by way of mortgage of the said Residential Property

said Residential Property as and by way of security for repayment of the

Loan and payment of interest as hereinafter provided.

NOW THIS DEED WITNESSETH that in pursuance of the said Loan

Agreement and in consideration of the sum of Rs. ____________ lent and

advanced/ to be lent and advanced by the Mortgagee to the Mortgagor on the

execution of these presents (the receipt whereof, the Mortgagor doth hereby

admit) the Mortgagor hereby covenants with the Mortgagee that the said sum of

Rs. ____________ together with interest, costs, charges, expenses and all other

amounts payable under the Loan Agreement (the “Mortgage Debt”) shall

become due and payable on the happening of any one of the following events

(hereinafter referred to as the “Specified Event”) whichever occurs first, that is to

say:

a) on the Mortgagor’s death (or in case where the Borrowers are a married

couple, on the death of the surviving spouse); or

b) in the event of the Mortgagor selling the Residential Property ; or

c) if the Mortgagor permanently moves out of the Residential Property;

Provided that:

i) the amount of the Mortgage Debt shall not exceed the sale proceeds

realized on sale of the Residential Property and in that event the claim for

the Mortgage Debt shall not exceed the sale proceeds of the said

Mortgaged Property;

ii) in the event of any heir/legal representative/executor/administrator of

the Mortgagor is willing to repay and discharges the Mortgage Debt

within sixty days after the death of the mortgagor or his/her spouse, the

Mortgagee shall not take any action for enforcement of the security on the

Residential Property.

iii) in the event the sale proceeds, on the sale of the Residential Property on

enforcement of the security exceeds the Mortgage Debt, such excess

amount shall be retained by the Mortgagee and the Mortgagee may make

payment of the same to the legal heirs of the Mortgagor as may be decided

by the Mortgagee in its absolute discretion after such legal heirs shall have

satisfied the Mortgagee by such evidence as may be satisfactory to the

Mortgagee that he/they is/are the legal heir(s) and the only person

entitled to inherit the estate of the deceased Mortgagor.

AND THIS DEED FURTHER WITNESSETH that in consideration aforesaid, the

Mortgagor doth hereby transfer by way of mortgage the Residential Property

together with all his rights, title and interest in the piece or parcel of land bearing

municipal no. [________] and lying bearing and situate at ____________________

within the city/village limits of [______] registration sub-district [______] and

district [_______] (hereinafter referred to as the “Mortgaged Premises”) and

described in the Schedule hereunder written as a security for repayment and

payment of the said Mortgage Debt with a condition that on the Mortgagor or his

heirs, executors, administrator, assigns repaying/paying the Mortgage Debt due

to the Mortgagee in accordance with the provisions contained in the Loan

Agreement and thereupon, the Mortgagee will release the Mortgaged Premises

from the mortgage security and shall if so required by the Mortgagor execute a

Deed of Release at the cost of the Mortgagor.

AND IT IS HEREBY AGREED AND DECLARED that in the event the Mortgage

Debt is not paid on occurrence of any of the Specified Events, the Mortgagee

shall be entitled to have the said Mortgaged Premises sold through any

competent Court and to realize and receive the said Mortgage Debt out of the net

sale proceeds of the said Mortgaged Property.

Nothing stated hereinabove shall prejudice or adversely affect the right of the

Mortgagee to enforce the security of mortgage of the Residential Property

created hereunder by resorting to the proceedings, remedies and enforcement of

its rights available to it under the Recovery of Debts Due to Banks and Financial

Institutions Act, 1993 and The Securitisation and Reconstruction of Financial

Assets and Enforcement of Security Interest Act, 2002, each for the time being in

force.

AND IT IS FURTHER AGREED AND DECLARED by the Mortgagor that he

shall also be liable to pay and shall pay all the costs, charges and expenses that

the Mortgagee will incur for the protection of the mortgage security and/or for

the realization of the Mortgage Debt and the same shall be deemed to form part

of the Mortgage Debt and the security thereof as aforesaid.

AND IT IS FURTHER AGREED that during the pendency of the security hereby

created and until repayment and payment of the Mortgage Debt, the Mortgagor

will get insured and keep insured the Mortgaged Premises from or against loss

and damages due to fire or any other accident in the sum of at least Rs.

___________ with some Insurance Company of repute (and which has been

approved by the Mortgagee) and pay all premia on the insurance policy as and

when the same become due and shall be payable in respect thereof to such

company and shall hand over the policy/ies to the Mortgagee duly endorsed in

its name as assignee And in the event of the Mortgagor failing to do so or to pay

the premium, the Mortgagee will be entitled to insure the Mortgaged Premises

and/or to pay the premium thereon and the amount paid by the Mortgagee in

respect thereof will be deemed to form part of the Mortgage Debt.

AND IT IS FURTHER AGREED that in the event of the Mortgaged Premises

being destroyed by fire or any accident as aforesaid, the Mortgagee will be

entitled to receive the insurance claim under such policy to the exclusion of the

Mortgagor and to appropriate the same first towards all arrears of interest and

then the principal amount or any part thereof as may be sufficient to pay the

Mortgage Debt due and if any surplus remains the same only will become

payable to Mortgagor.

IN WITNESS WHEREOF the parties have put their hands the day and year first

hereunder written.

THE SCHEDULE – I REFERRED TO ABOVE

(Description of the Residential Property)

Signed and delivered by, ……., the Mortgagor,

Signed and delivered by, ……., the Mortgagee,

in the presence of WITNESSES: