Simple Mortgage Deed
A Simple 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. Some states use documents called mortgage deeds, and some use an alternate form called a deed of trust, while still others allow both.
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.
In India, section 55 of the Transfer of Property Act,1882 explains for the relevant covenants and under section subsection 2 of section 55 of the Transfer of Property Act,1882, the benefit of the covenants run with the land and can be enforced by the transferees for time to time except the covenant as to indemnity. Before going to discuss with the deed of mortgage, it is apt to see how a conveyance begins with. A conveyance starts with the names of the parties and it ends with the execution and attestation clauses (Simple Mortgage Deed).
A mortgage deed is a form usually filed at a land records office that allows a lender to recover the property if a mortgage loan isn’t paid. Exactly what it looks like varies based on state law.
A deed generally is a legal document recording that somebody has a legal interest in a piece of property. There are various types of deeds used for different situations, from sheriff’s deeds used when a sheriff auctions off the property to quitclaim deeds where someone transfers their right to a property to someone else (Simple Mortgage Deed). If you buy or sell a property, a title insurance company will usually verify that the history of deeds on the property is coherent and grants the new owner a clear right of title to it with no surprise owners lurking in the past.
Deeds are generally public records filed, often for a fee, with a county or city registry office. They can be viewed in person by anyone interested in knowing who has an interest in which parcels of land. In some places, they can also be viewed and searched online.
One type of deed is a mortgage deed, used to legally give a bank or other lender an interest in a property until a loan is paid off. The mortgage deed ensures that the lender will get paid if the property is sold and ensures the lender can foreclose on the property if the borrower stops paying.
When a Simple mortgage Deed loan is paid off, another document is filed at the local property records office called satisfaction of mortgage. This document indicates that the lender no longer has any legal interest in the property. Lenders are often required under state law to file this within a certain amount of time after a mortgage has been paid off, but it’s a good idea for borrowers to make sure these documents are in order. If the satisfaction of mortgage isn’t properly recorded, it can cause problems when the land is sold.
Different Parties To a Simple Mortgage Deed
While drafting a deed, the name of party comes first, and then the surname and thereafter the address of the party by other descriptions like ” son of ” (”s/o”), ”wife of ”(”w/o”), ”daughter of ” (”d/o”). the transferor must be mentioned first thereafter the transferee. And then the occupation/profession of the party comes next. If there is a confirming party, he/she may be joined and placed next after the transferor.
It must be remembered that all proper parties to a deed, however, the inter parties should be impleaded for the reason in common law, only parties to the contract can take benefit under the same. If any change in names of the parties is intended, such change should be accounted for after the name of the conveying party. If a woman, who is divorced, her name should be described as ” fame sole”. Caste or religion may be mentioned.
Trust: If there is trust, their names and as trustees to the estate under the deed of trust must be stated. In case of any trustee who is appointed by Court, the date of such order of the Court and its proceedings are to be mentioned.
Government: In case of Government, a person authorized under Article 229(1) of Indian Constitution is to be mentioned in the deed and such transfer must be expressly made on behalf of or in the name of the President of India or the Governor of State concerned.
Firms: In case of Firms, all partners must join as under section 19 of the Indian Partnership Act (IX of 1932). Here, it is essential to see that one or more partners of a firm shall not transfer any immovable property which belongs to such firm in the absence of express terms or by virtue of custom or usage to the contrary.
However, if trading assets of a firm, which business is to buy and sell lands, the managing partner can sell as the partner of the firm and acting on behalf of such firm carrying business under the name and style of such firm.
Juridical Persons: If registered society, company, after their names, registered under Societies Registration Act, or the Indian Companies Act, or incorporated under any special statue with full address of the head office are to be mentioned.
Recitals Of Deed: The recital of the deed must be short and intelligible. The recital of a deed must contain a brief history of the property up to its vesting in the transferor. Basically, recitals are two types.
1. Narrative recitals,
2. Introductory recitals.
Narrative recitals mean facts and circumstances which show the nature of interest to be dealt with. Introductory recitals mean those show the motive or intention behind the execution of the deed and are immediately followed by the operative part, however Introductory recitals of a deed can contain facts culminating in the execution of the deed beginning from the agreement up to the motive for such transfer.
Habendum: It means part of the deed which explains the interest that the purchaser is to take in the property such phrases as ” to have” and ”to hold” are to be used, however, those are not essential to make the transfer (Simple Mortgage Deed).
Covenants: Generally a covenant can be in express terms. However, it is inferred on the construction of the entire instrument. That too, an implied covenant or covenant in law, is one which the law implies either from the nature of the transaction or from the use of certain technical words. Further, a covenant is an agreement under seal, whereby one or more of the parties to the deed stipulates for the truth of certain facts or is bound to do or not to do a specified thing (Simple Mortgage Deed).
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