DEED OF SIMPLE MORTGAGE DEED
Deed of Simple Mortgage Deed is a blank-form mortgage deed under which a property owner secures a loan while keeping possession of the property. It records repayment and interest obligations, the mortgagee’s remedies if payment is not made, and the parties’ rights if the property is sold. The supplied text does not identify an issuing department, order number or issue date, although the deed is drafted for execution in two thousand seventeen.
What the deed covers
The Deed of Simple Mortgage Deed creates security over the mortgagor’s property for money lent by the mortgagee. The form requires details of the parties, loan amount, interest rate, payment method, repayment period, property market value and the registered sale deed through which the mortgagor acquired the property.
The deed states that the mortgagor is the sole and absolute owner, has marketable title, is in possession and has paid government and local authority dues. The mortgaged land must be described in a property schedule.
Who it affects
The Deed of Simple Mortgage Deed directly affects:
- The mortgagor, who owns the property, receives the loan and promises repayment.
- The mortgagee, who lends the money and receives the property as security.
- Their heirs, executors, administrators, legal representatives, nominees and assigns, where the context permits.
- A purchaser at a sale conducted following non-payment, because the deed provides for conveyance of the mortgagor’s and mortgagee’s rights.
Key financial terms
The Deed of Simple Mortgage Deed leaves blanks for the parties to specify:
- The principal loan amount and how it was paid.
- The annual interest rate.
- The monthly date by which interest must be paid.
- The period for repayment of principal.
- Whether principal is payable on demand or after a stated period, and the required notice.
The mortgagee must discharge the mortgage when the secured amount is repaid in accordance with the deed.
Possession and enforcement
The Deed of Simple Mortgage Deed expressly keeps possession with the mortgagor. The mortgagor neither gives nor agrees to give possession to the mortgagee merely by signing the deed.
If the secured amount becomes due, the deed allows the mortgagee to exercise powers under the Transfer of Property Act, 1882, without losing the right to file a suit for sale of the property. If sale proceeds are insufficient to cover costs, interest and principal, the mortgagor must personally make good the balance from other property. Any surplus remaining after those deductions must be paid to the mortgagor.
Owner’s continuing promises
The mortgagor promises that the property has valid title and no other mortgage, charge or encumbrance. The mortgagor must also avoid impairing the security, continue paying taxes and property charges, and accept notices sent or left at the address stated in the deed.
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 the property owner give possession to the lender under this mortgage deed?
No. The deed states that possession remains with the mortgagor and is not given or agreed to be given to the mortgagee.
What happens if the mortgagor does not repay the secured amount?
The mortgagee may exercise the powers referred to in the Transfer of Property Act, 1882, and may file a suit for sale of the property. The applicable timing and notice periods must be completed in the blanks in the deed.
What happens if the sale price does not cover the debt?
The mortgagor must personally make good any shortfall after sale. If money remains after costs, interest and principal are deducted, the surplus must be paid to the mortgagor.
Can the property already have another mortgage or charge?
The form requires the mortgagor to promise that no other mortgage, charge or encumbrance has been created over the scheduled property.
