ISWAR SARAN PG COLLEGE

(UNIVERSITY OF ALLAHABAD)
BA.LLB(Hons)

10th semester

{2023-2024}

• SUBMITTED BY - Ankur Yadav

• ROLL NO. - 12
• SUBJECT – Drafting, pleading and conveyencing
• TOPIC- Drafting of a mortgage deed
• SUBMITTED TO – Mr. Deepak Maurya

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 Acknowledgement

I would like to express my sincere thanks to Mr. Deepak Maurya Sir for his valuable guidance
and support in completing my project. I would also like to express my gratitude towards our
principal Mr. Anand Shankar Singh for giving me this great opportunity to do a project on
Drafting of a Mortgage deed.
Without their support and suggestions, this project would not have been completed.

Ankur Yadav
BA.LLB{HONS.}
10th SEMESTER ,2023-2024

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 TABLE OF CONTENT

S.no. Title Pg.no.

1 Introduction, what is mortgage deed, Essential Clauses of 4&5
mortgage deed.

2 Mortgage deed draft 6 to 8

3 Conclusion and references 9

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 INTRODUCTION
A mortgage is a loan used to purchase a home, land, or other real estate property. The borrower
promises to repay the lender over a specified duration, typically in a series of regular payments
that cover both principal and interest. The property serves as collateral for the loan. Borrowers
can apply for a mortgage through one of the banks or financial institutions and must meet certain
requirements, such as minimum credit ratings. Mortgage applications go through a lengthy
underwriting process before they reach the closing stage. Conventional and fixed-rate loans are
two different types of mortgages that are based on the needs of the borrower.
What is Mortgage deed?
The “Mortgage Deed” is an instrument or legal document that includes different terms and
conditions related to the mortgage. It gives the lender interest as well as legal rights to the
property. All of the borrower’s rights and interests in the property pledged as collateral are
therefore formalized in the Mortgage Deed. This protects the lender since if the loan is not paid
on time, he can exercise his legal rights over the property.
Essential clauses in a mortgage deed
As informed above, now that we have a fundamental understanding of the mortgage and
mortgage deed, let us look at the essential clauses in the mortgage deed.
The following are the main clauses of the mortgage deed:
 Title
It is important to specify the title of the agreement/deed. For eg. INDENTURE OF
MORTGAGE.
 Parties
The names of the parties i.e. mortgagor and the mortgagee must be specified in the mortgage
deed. The mortgagor is the person who provides the interest in his property as security to obtain a
loan, whereas the mortgagee is the person to whom the interest is transferred. The mortgagor, as
defined by the Indian Contract Act, 1872, must be competent to enter into a contract, although
the mortgagee may be a minor. According to contract law, he may not be competent.
 Recitals

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Recitals are the initial statements in an agreement that indicate the parties’ intention to enter into
the contract. The recital, often known as the preamble, provides a list of the agreement’s
characteristics. It usually begins with a phrase like WHEREAS.
 Grant of mortgage
This is one of the main clauses of the mortgage deed. This explains that in consideration of the
lender advancing the loan to secure the loan amount, the mortgagor creates the charge over the
properties in favour of the mortgagee also grants, transfers, conveys, assigns and assures the
rights and benefits over the mortgaged properties.
 Covenant to pay
This clause specifies the terms and conditions of the repayment of the loan amount. The total
amount and repayment schedule of the loan amount are also specified in this clause or as
scheduled in the loan agreement. The main intention is that mortgagor covenants and agrees to
comply with the terms and conditions of the finance documents and to repay the loan amount to
the lender.
 Adequate consideration
As we know, the borrower mortgages the property to secure the loan amount under the mortgage
deed. In this clause, the mortgagor confirms that the security provided by them constitutes
adequate, good and valuable consideration.

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 Mortgage Deed Draft

MORTGAGE DEED

This Deed of Mortgage is made and executed on the 15th day of April, 2024, at New Delhi, by
and between:

The Mortgagor:
Mr. Rajesh Kumar, son of Mr. Mohan Kumar, aged 35 years, residing at 123, Green Avenue, New
Delhi, Delhi, India, possessing Aadhaar Card number 1234 5678 9012, hereinafter referred to as
the "Mortgagor" (which expression shall unless repugnant to the context or meaning thereof, be
deemed to include his heirs, executors, administrators, legal representatives, and assigns) of the
ONE PART;

The Mortgagee:
Ms. Priya Sharma, daughter of Mr. Arun Sharma, aged 40 years, residing at 456, Sunshine
Apartments, Mumbai, Maharashtra, India, possessing PAN Card number ABCDE1234F,
hereinafter referred to as the "Mortgagee" (which expression shall unless repugnant to the context
or meaning thereof, be deemed to include her heirs, executors, administrators, legal
representatives, and assigns) of the OTHER PART.

WHEREAS:

1. The Mortgagor is the absolute owner and lawful possessor of an immovable property being
land and building situated at 789, Blue Street, Bangalore, Karnataka, India, admeasuring about

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2000 square feet, and bearing Survey No. BNG123456789, more particularly described in the
Schedule annexed hereto and hereinafter referred to as the "Property";

2. The Mortgagor is desirous of borrowing a sum of Rs. 10,00,000 (Rupees Ten Lakhs) from the
Mortgagee for his personal use and requirements;

3. The Mortgagee has agreed to lend and advance the said sum of Rs. 10,00,000 (Rupees Ten
Lakhs) to the Mortgagor on the terms and conditions hereinafter appearing;

4. The Mortgagor has agreed to secure the repayment of the said sum of Rs. 10,00,000 (Rupees
Ten Lakhs) and interest thereon by executing these presents in favour of the Mortgagee;

NOW THIS INDENTURE WITNESSETH:

1. That in pursuance of the said agreement and in consideration of the sum of Rs. 10,00,000 ( Ten
Lakh Rupees) paid by the Mortgagee to the Mortgagor (the receipt whereof the Mortgagor
hereby admits and acknowledges), the Mortgagor doth hereby mortgage, charge, and hypothecate
unto the Mortgagee the Property and premises more particularly described in the Schedule
annexed hereto, together with all and singular, the rights, privileges, and appurtenances thereunto
belonging or in any wise appertaining thereto, TO HAVE AND TO HOLD the same unto the
Mortgagee his heirs, executors, administrators, and assigns, to the intent that the same may be
security for the repayment of the said sum of Rs. 10,00,000 (Ten Lakh Rupees) with interest
thereon at the rate of [Interest Rate] percent per annum from the date hereof until payment.

2. The Mortgagor shall repay the said sum of Rs. 10,00,000 (Rupees Ten Lakhs) with interest
thereon to the Mortgagee in 24 installments of Rs. 45,000 each, commencing from 1 st June 2024,
and thereafter on the 1st day of each Subsequent month, until the entire amount is repaid in full.

3. The Mortgagor covenants with the Mortgagee that he shall pay the said sum of Rs. 10,00,000
(Rupees Ten Lakhs) with interest thereon at the rate aforesaid on the due dates and in the manner
hereinbefore provided.

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4. In case of default in payment of any of the installments of the principal sum and/or interest
thereon as hereinbefore provided on the due dates, the Mortgagee shall have the right to recover
the entire balance of the said principal sum together with all interest then accrued and unpaid,
and all costs, charges, and expenses incurred in recovering the same.

IN WITNESS WHEREOF, the parties hereto have executed this Deed of Mortgage on the day,
month, and year first above written.

Signed, Sealed, and Delivered by the within named Mortgagor,

Mr. Rajesh Kumar

in the presence of:

1. Mr. Anil Verma,
123, Green Avenue, New Delhi, Delhi, India
2. Mrs. Sunita Gupta,
456, Sunshine Apartments, Mumbai, Maharashtra, India

Signed, Sealed, and Delivered by the within named Mortgagee,

Ms. Priya Sharma

in the presence of:

1. Mr. Anil Verma,
123, Green Avenue, New Delhi, Delhi, India
2. Mrs. Sunita Gupta,
456, Sunshine Apartments, Mumbai, Maharashtra, India

SCHEDULE

The property situated at 789, Blue Street, Bangalore, Karnataka, India, admeasuring about 2000
square feet, and bearing Survey No. BNG123456789, more particularly described as follows:

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[Detailed Description of the Property]

CONCLUSION

To conclude, a mortgage deed is a document that covers all terms and conditions of the loan
advanced to the borrower by the lender. The deed contains information on the loan, such as the
parties involved, the property given as collateral, the loan amount, the interest rate, and more.
The deed explains everything there is to know about the property’s interest and title. It aids in the
identification of the rightful owner of the mortgaged property. It is important to understand the
terms and conditions of the agreement, which is why understanding the mortgage deed’s main
clauses is even more critical.

REFERENCES
1. https://www.fullertonindia.com/what-is-mortgage-deed.aspx
2. https://legalraj.com/services/mortgage-deed-drafting
3. PC: Analyticssteps.com