Growthify

The Ultimate Guide

Draft Your Mortgage Deed with Growthify

A Mortgage is an essential financial service that enables individuals and businesses to secure Loans Against Immovable Property, such as Residential homes, Commercial spaces, or Land. Mortgages allow borrowers to access funds for purchasing property, construction, or business needs while providing lenders legal security. A Mortgage is a transfer of an interest in immovable property and it is given as a security against a loan. The Ownership of an Immovable property remains with “Mortgagor” itself but some interest in the property is transferred to the “Mortgagee” who has been given a loan.

At Growthify, we are technology driven to provide end-to-end legal services that are designed to minimize disputes and make your Mortgage journey smooth and hassle-free. Our solutions cover important aspects of the Mortgage process, ensuring transparency, clarity, and ease, so you can get things done efficiently without the usual legal complexities. Understanding the types, registration process, and documents that is crucial when availing Mortgage services in India.

In general, the Mortgage procedure in India entails carefully adhering to legal criteria such as checking property title, paying Stamp Duty, and registering a Mortgage Deed. At Growthify, our Legal Specialists fully comply with all legal requirements under the Transfer of Property Act and the Registration Act, and we use Technology-Driven Solutions to benefit the client in a transparent, safe, and efficient Mortgage, helping to simplify these convoluted legal formalities and deliver an efficient, seamless Mortgage registration documentation experience. Rely on Growthify for a simple Mortgage experience from application to loan disbursement.

TYPES OF Mortgage

Mortgage Deeds come in various forms, each designed to meet specific needs based on the property type

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Simple Mortgage

A Simple Mortgage is a type of secured loan agreement where the borrower pledges immovable property as collateral to the lender without transferring possession of the property. Under this arrangement, the borrower executes a legally binding mortgage deed acknowledging the debt and agrees that upon default meaning failure to repay the loan or any part thereof within the stipulated timeframe the lender shall have the right to initiate legal proceedings to recover the outstanding amount. In such an event, the lender may seek a decree from a competent court to authorize the sale of the mortgaged property.

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Mortgage by Conditional Sale

A Mortgage by Conditional Sale transfers property ownership to the lender with the condition that it reverts to the borrower upon full repayment. The mortgage deed sets repayment terms, including possible sale of the property or increased interest if installments are delayed. Failure to comply allows the lender to enforce sale rights, protecting their interest under applicable laws while outlining borrower’s redemption rights.

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Usufructuary Mortgage

A Usufructuary Mortgage grants the lender the right to use or benefit from the property, such as renting or utilizing it, during the loan period. However, ownership remains with the owner, who retains the primary rights. The lender's rights are limited to the usufructuary interest, ensuring the owner’s continued ownership until full repayment of the loan.

Decode English Mortgage Type

English Mortgage

An English Mortgage involves the borrower transferring the title of the property to the lender at the outset, with a condition that ownership will revert to the borrower once the full loan amount, including interest, is repaid. Until repayment, the lender holds legal ownership, but the borrower retains possession and the right to redeem the property upon fulfilling their repayment obligations.

Your Mortgage Map

Mortgage by Deposit of title deeds

In Mortgage by deposit of title deed, Mortgage occurs when the borrower deposits the property’s title deeds with the lender as security for a loan, without transferring legal ownership. This creates an equitable interest in favor of the lender, allowing the lender to seek repayment through the property’s sale if default occurs. It is commonly used in banking to secure loans while the borrower retains ownership and possession.

MORTGAGE REGISTRATION PROCESS

Mortgage Deeds come in various forms, each designed to meet specific needs based on the property type

1. Gather Details from Parties

We gather information from our Mortgagor and Mortgagee as accuracy starts with knowing. Designed a simple, easy-to-navigate questionnaire to guide you through a few key inputs such as Contact Details, Property Information, Time Period of Loan, Amount of Loan, and Obligations. By collecting everything as a whole, we can limit your Adjustments, Avoid delays, and provide a Mortgage Deed that is Drafted from clarity and completion.

2. Draft the Mortgage Deed

While drafting Mortgage Deeds, each client's unique circumstances are carefully considered by our experienced legal team to produce Mortgage deeds that are legally enforceable and strategically intentional. All factors, such as loan amount, repayment term, and applicable interest fees are accurately depicted. Every part of the deed aligns and meets the industry standards, with the appropriate protective measures, such as foreclosure provisions and default remedies. There it is! A Mortgage deed that is relevant to your lending needs, protects your interests, and helps you move the transaction faster with certainty.

3. Regulation Check

We at Growthify understand that Transfer of Property Act and state-specific Stamp duty requirements can significantly impact the validity of a Mortgage deed. That’s why our legal experts conduct a thorough compliance check, scanning your draft to ensure alignment with current rules and regulations. In parallel, we assist lenders in evaluating the property’s market value and legal status, providing a comprehensive assessment that supports informed decision making and secure transactions.

4. Registration

The Mortgage Deed in India must be registered under Registration Act, 1908 in order to be legally valid and enforceable. At Growthify our legal expert ensures that while drafting your Mortgage deed, all important terms specified by Registration Act, 1908 and The Transfer Of Property Act, 1882 are duly incorporated.

5. Deliver the Final Product

On the successful execution and registration of the Mortgage Deed by both parties before the suitable Sub-Registrar, Growthify will shortly deliver the final registered deed to the concerned party. Growthify, a technology-driven legal services company, automates and streamlines the entire Registration Process, from drafting to Loan Sanction and Deed delivery, ensuring accuracy, transparency, and speed. This approach eliminates the delays and manual follow-ups which are usually linked with traditional legal procedures.

DOCUMENTS REQUIRED

Our service is available to all individuals and businesses of all sizes, from solo entrepreneurs to large corporations.

Necessary Documents required for a Mortgage Deed

Title Clearance Report
Loan Amount Sanction Letter Issued by Bank
Property Evaluation Report
Title Deeds of the Property
Encumbrance Certificate
Latest Property Receipts
No Objection Certificate from builders/society/previous Lenders
Identity Proof of both parties(PAN card, Aadhar card)
Passport Size photo of both parties
Income Proof (ITR return, Salary slip, Bank Statement)

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Important clause for Mortgage deed

Mortgage Deed vary by purpose, each requiring specific content to meet legal requirements.

01

Parties to the Mortgage

The mortgage deed opens by clearly identifying everyone involved, the borrower (often called the mortgagor) who owns the property and needs the loan, and the lender (the mortgagee) who provides the funds. Full legal names, addresses, and any relevant identification details are included to leave no doubt about who is bound by the agreement.

02

Description of the Property

A precise description of the mortgaged property follows, including its full address, legal boundaries, plot number, survey details, and any fixtures or improvements that form part of the security. This ensures the lender knows exactly what asset backs the loan and prevents disputes over what is covered.

03

Principal Amount and Interest

The core financial terms spell out the exact loan amount advanced, the interest rate (whether fixed, variable, or stepped), how interest is calculated (monthly, annually, or on reducing balance), and the repayment schedule: monthly installments, balloon payments, or full repayment on a set date, so both sides track obligations without confusion.

04

Covenant to Repay

The borrower formally promises to repay the loan along with interest on the agreed dates. This clause often includes details of the bank account for payments, consequences of late payments such as penalties or additional interest, and the borrower’s responsibility to keep the lender informed of any change in financial circumstances.

05

Security and Charge

This section creates the actual mortgage by charging the property as security for the loan. It states whether it is a legal mortgage (transferring ownership interest until repayment) or an equitable one, and confirms the borrower’s title is free from prior encumbrances unless disclosed and accepted by the lender.

06

Borrower’s Covenants

The borrower agrees to a series of ongoing duties: maintaining the property in good repair, paying all taxes, utilities, and insurance premiums, obtaining the lender’s consent before leasing or altering the property, and allowing periodic inspections to verify the asset’s condition and value.

07

Insurance Obligations

The property must be insured against fire, natural disasters, and other risks for at least the loan amount, with the policy noting the lender’s interest. Premiums are paid by the borrower, and any insurance payout in case of damage goes first toward reinstating the property or reducing the loan, as the lender directs.

08

Events of Default

A clear list defines what breaks the agreement such as missing payments for a set period, breaching covenants, insolvency, false declarations, or the property losing value sharply. Triggering a default lets the lender demand immediate full repayment or start recovery steps without further notice.