Mortgage Deed — Key Legal Points
Transfer of Property Act 1882 — ss.58–67 (Mortgage defined and types) Registration Act 1908 — s.17 (Simple & English mortgage deeds must be registered) Indian Stamp Act 1899 — Stamp duty varies by state and loan amount SARFAESI Act 2002 — Enforcement rights for secured creditors (banks/NBFCs) Registration is compulsory for Simple and English Mortgage deeds. An Equitable Mortgage by deposit of title deeds does not require registration but must be in a notified city (Mumbai, Kolkata, Chennai, and other notified towns). Stamp duty varies by state.
SIMPLE MORTGAGE DEED Transfer of Property Act, 1882 — Section 58 | New Delhi , Delhi THIS SIMPLE MORTGAGE DEED is made and executed on [Date], at New Delhi , BETWEEN:
MORTGAGOR (BORROWER)
Suresh Kumar Patel
PAN: AABCP1234D
Mortgagor address
MORTGAGEE (LENDER)
State Bank of India
Mortgagee address / branch
1. Recitals
The Mortgagor is the absolute owner of the property described hereunder and has applied to the Mortgagee for a loan of [Loan Amount]. The Mortgagee has agreed to advance the said loan on the security of the property described in Schedule A hereto, on the terms and conditions herein set forth.
2. Schedule A — Mortgaged Property
All that piece and parcel of residential flat No. 301, 3rd Floor, Shanti Heights, Sector 12, Dwarka, New Delhi – 110 078, measuring 1,400 sq ft… (Plot No. 12, Sector 12 ), measuring approximately 1400 sq ft. Title document: Sale Deed dated 10/03/2020, Doc No. 789/2020 . ("Mortgaged Property")
3. Loan Amount and Disbursement
In consideration of the Mortgagee having advanced / agreed to advance the sum of [Loan Amount] (Rupees 0 only) ("Principal"), which the Mortgagor acknowledges to have received, the Mortgagor hereby mortgages and charges the Mortgaged Property as security for repayment of the Principal together with interest thereon.
4. Interest
The Mortgagor shall pay interest on the outstanding Principal at the rate of 8.5 % per annum, calculated on a reducing / diminishing balance basis, subject to revision as per the Mortgagee's applicable base rate / RLLR / MCLR from time to time.
5. Repayment
The Principal together with interest shall be repaid by the Mortgagor in equated monthly instalments (EMIs) over a period of [Tenure], commencing from [First EMI Date]. Each EMI shall be due and payable on or before the 1st day of each calendar month.
6. Mortgage and Security
Without delivering possession, the Mortgagor binds himself personally to pay the mortgage money and agrees that, in the event of default, the Mortgagee shall have the right to cause the Mortgaged Property to be sold through a decree of court and apply the sale proceeds towards satisfaction of the mortgage money.
7. Mortgagor's Representations and Covenants
The Mortgagor represents and covenants that: (a) the Mortgagor has good and marketable title to the Mortgaged Property; (b) the Mortgaged Property is free from all prior encumbrances, charges, liens, and attachments; (c) the Mortgagor shall not create any further charge or encumbrance on the Mortgaged Property without the prior written consent of the Mortgagee; (d) the Mortgagor shall keep the Mortgaged Property insured and pay all taxes, levies, and outgoings; (e) the Mortgagor shall maintain the Mortgaged Property in good repair and condition.
8. Default and Enforcement
In the event of: (a) default in payment of two or more consecutive EMIs; (b) breach of any covenant herein; or (c) insolvency of the Mortgagor — the entire outstanding mortgage money shall immediately become due and payable. The Mortgagee shall be entitled to enforce the mortgage security in accordance with applicable law, including under the SARFAESI Act, 2002 (if applicable), or by filing a suit for sale of the Mortgaged Property.
9. Prepayment
The Mortgagor may prepay the outstanding Principal in whole or in part. No prepayment penalty shall be charged.
10. Governing Law and Jurisdiction
This Deed shall be governed by the laws of India. Any disputes arising hereunder shall be subject to the exclusive jurisdiction of the courts at New Delhi , Delhi .
IN WITNESS WHEREOF the Mortgagor has executed this Deed on the date first written above, in the presence of the witnesses named below.
MORTGAGOR
Suresh Kumar Patel
______________________
MORTGAGEE (Authorised Signatory)
State Bank of India
______________________
Witness 1
___________________
______________________
Witness 2
___________________
______________________