Document background
The Mortgage Agreement is a crucial legal instrument in Indian property financing, governed primarily by the Transfer of Property Act, 1882, and related legislation. This document is essential when a borrower seeks to obtain a loan by creating a security interest in their immovable property. The agreement serves multiple purposes: it establishes the lender's security interest, defines the loan terms and conditions, outlines the rights and obligations of all parties, and provides mechanisms for enforcement in case of default. The document must comply with strict legal requirements including registration under the Registration Act, 1908, and payment of appropriate stamp duty. It's commonly used by banks, housing finance companies, and other financial institutions for both residential and commercial property loans.
