Official guidance, Tamil Nadu land law
CONVEYANCE IN FAVOUR OF MORTGAGEE
Conveyance in Favour of Mortgagee is an official guidance deed template for transferring mortgaged property from the owner and mortgagor to the mortgagee by sale, while adjusting the mortgage debt against the sale price. The supplied text does not name an issuing department, government order number or publication date. The printed execution clause provides for signing at Chennai on a blank day and month in 2017.
What the deed covers
Conveyance in Favour of Mortgagee records a sale by a property owner, described as the Vendor and Mortgagor, to the lender, described as the Purchaser and Mortgagee. It is intended for a situation where the owner cannot repay the mortgage amount and the mortgagee agrees to purchase the mortgaged property.
The deed provides that the outstanding mortgage amount is adjusted against the sale consideration. Any balance sale amount may be paid by demand draft, cash or RTGS. The mortgagee's interest as lender then merges into the mortgagee's title as owner, and the mortgage debt and other money payable under the mortgage deed are treated as fully discharged.
Who may need it
Conveyance in Favour of Mortgagee is relevant to:
- A mortgagor who owns property and proposes to sell it to the mortgagee because the secured amount cannot be repaid.
- A mortgagee who agrees to purchase the mortgaged property.
- Buyers, owners and professionals checking how the mortgage debt, sale price and title transfer are recorded.
The template contains blanks for party details, identity numbers, mobile numbers, the property's earlier sale deed, mortgage registration details, consideration, payment method and property schedule.
Main statements and protections
Conveyance in Favour of Mortgagee includes the following provisions:
- The Vendor states that the property was purchased from personal funds and that the Vendor has absolute ownership, possession and power to transfer it.
- The Vendor states that taxes and other amounts payable to government and local authorities have been paid.
- The Vendor states that there is no encumbrance other than the identified mortgage, which is discharged through the sale deed.
- The transfer includes the land, premises, permanent attachments, privileges, profits, rights and related interests.
- The Purchaser receives the property absolutely and may possess, enjoy and receive income from it without claims through the Vendor.
- Future rents, rates, taxes, assessments, dues and duties remain payable to the relevant government, municipal corporation, public body or local authority.
- The Vendor promises to execute further lawful documents or acts reasonably required to perfect the Purchaser's title, at the Purchaser's request and cost.
Signing
Conveyance in Favour of Mortgagee provides for signatures by both the Vendor and Purchaser in the presence of witnesses.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this deed transfer the property to the mortgagee?
Yes. The template provides for the Vendor to convey the mortgaged land and premises by sale to the Purchaser, who is also the Mortgagee, to hold as owner.
What happens to the outstanding mortgage amount?
The principal and interest due under the mortgage are adjusted through the sale deed against the sale consideration. The deed states that the mortgage debt and other money payable under the mortgage are fully discharged.
Can there be a balance payment after adjusting the mortgage debt?
Yes. The template includes a field for the balance sale amount and permits recording payment by demand draft, cash or RTGS.
Who pays property taxes and public dues after the transfer?
The property remains subject to rents, rates, taxes, assessments, dues and duties payable from time to time to the government, municipal corporation, public body or local authority.
