A mortgage deed is a legal document that allows a lender to take out a loan secured against real estate. It outlines the terms of the loan, including the interest rate, repayment schedule, and other relevant information, such as prepayment penalties and late fees.
This Mortgage Deed (this “Mortgage”) is made effective as of this (insert date), by and between/among:
The Mortgagor/Borrower(s): [Borrower.FirstName] [Borrower.LastName] , located at [Borrower.StreetAddress] (collectively, the “Borrower”) and
The Lender(s): [Lender.FirstName] [Lender.LastName] , located at [Lender.StreetAddress] (collectively, the “Lender”).
WHEREAS, the Lender is engaged in the business of lending money; and
WHEREAS, the Borrower is seeking to borrow a loan from the Lender to purchase real estate at (insert location); and
WHEREAS, to secure repayment of such a loan, the Borrower is willing to grant a mortgage on the real estate owned by the Borrower; and
WHEREAS, under this Mortgage, the Lender is granted a security interest on such real estate to secure repayment of the loan.
The sum of $ (insert amount) (the “Principal Amount”), together with interest of (insert rate) % compounded annually, is hereby loaned by the Lender to the Borrower under the terms and conditions set forth herein.
The mortgage deed sets out all the terms and conditions of this loan agreement, including information on the repayment schedule, interest rate, penalties for late or missed payments, and other relevant details. It is a legal document that gives the lender a security interest in the real estate being purchased with the loan, so if the borrower defaults on repayment, the lender can take ownership of the property.
Grants usually cover the right to take possession of the property if necessary and are sometimes referred to as “power of sale” clauses. Define the terms of when and how the lender can exercise this power.
The Borrower hereby grants to the Lender, its successors, and assigns the irrevocable, absolute, and unrestricted right and power under applicable law (a) to exercise all rights of ownership on or concerning the real estate located at (insert location), including, without limitation, any right of entry or power of sale; (b) to take possession of any personal property located on the premises as security for repayment of the loan; and (c) to lease, mortgage, sell, transfer, convey, or otherwise deal with such real estate and/or any personal property located on it.