Simple Mortgage Agreement Template for India

The Simple Mortgage Agreement is a crucial legal instrument in Indian property financing, essential for both residential and commercial property transactions. This document is used when a borrower (mortgagor) needs to secure a loan by creating a charge on their property in favor of a lender (mortgagee), while retaining possession of the property. The agreement must comply with the Transfer of Property Act, 1882, Registration Act, 1908, and relevant state-specific stamp duty laws. It includes comprehensive details about the property, loan terms, parties' rights and obligations, and enforcement mechanisms. A Simple Mortgage Agreement is particularly important as it provides security to lenders while allowing borrowers to continue using their property, making it a preferred choice for many property-based financing arrangements in India.

1. Parties: Identification of the mortgagor (borrower) and mortgagee (lender) with complete details including names, addresses, and legal capacity

2. Background: Context of the mortgage arrangement, including the loan request and property ownership status

3. Definitions: Definitions of key terms used throughout the agreement for clarity and legal certainty

4. Property Details: Brief description of the mortgaged property with reference to detailed Schedule

5. Loan Amount and Terms: Details of the principal amount, interest rate, and repayment terms

6. Creation of Mortgage: Express declaration of the mortgage and the nature of security interest being created

7. Rights and Obligations of Mortgagor: Mortgagor's commitments regarding property maintenance, insurance, taxes, and restrictions on further encumbrance

8. Rights and Obligations of Mortgagee: Mortgagee's rights regarding property inspection, enforcement of security, and collection of dues

9. Events of Default: Circumstances constituting default and consequences thereof

10. Remedies: Rights and remedies available to the mortgagee in case of default

11. Representations and Warranties: Statements and assurances by the mortgagor regarding property title, authority to mortgage, etc.

12. Governing Law and Jurisdiction: Specification of applicable law and courts having jurisdiction

13. Notices: Method and addresses for serving notices between parties

14. Execution: Signature blocks and witness requirements