Simple Mortgage Deed
Simple Mortgage Deed
Simple Mortgage Deed
All the rights and interests that the borrower has over the property is
pledged as collateral are consequently legalized in the Mortgage Deed.
It provides the lender with interest and legal rights over a property.
This in-turn protects the lender, in case of any default in payment of the
loan, he can claim his legal rights over the said property.]
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SIMPLE MORTGAG
Where, without delivering possession of the mortgaged
property, the mortgagor binds himself personally to pay
the mortgage-money, and agrees, expressly or impliedly,
that, in the event of his failing to pay according to his
contract,
—>the mortgagee shall have a right to cause the
mortgaged property to be sold and the proceeds of sale to
be applied, so far as may be necessary, in payment of the
mortgage-money, the transaction is called a simple
mortgage and the mortgagee a simple mortgagee.
E.g., A borrows Rs 10 lakhs from B and keeps his house
as a security for its repayment. The contract empowers
the mortgagee to proceed against the property in the
event of non- payment of loan. It also gives a right to B
to proceed against A personally should he so want, and
obtain a money decree against him in a court of law.
A retains the possession of the property. This is a simple
mortgage, as not only the property is mortgaged, but
also, the mortgagor is personally bound to repay the
money. The mortgagee has an option here to proceed
either against the mortgagor or against the mortgaged
property.
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And It Is Further Agreed That the mortgagor can grant lease of the
said house with the consent of the mortgagee in writing.
IN WITNESS WHEREOF the parties have put their hands the day
and year rst hereunder written.
WITNESSES;
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