A mortgage deed is a legal document used in real estate transactions where a property is pledged as security for a loan. It outlines the terms and conditions of the mortgage, including the amount borrowed, interest rate, repayment terms, and the rights and responsibilities of both the borrower (mortgagor) and the lender (mortgagee). Here are the key components and steps involved in a mortgage deed:

1. Identification of Parties: The mortgage deed starts by identifying the parties involved, including the borrower (mortgagor) and the lender (mortgagee). Their full names, addresses, and other relevant identifying information are typically included.

2. Description of Property: The deed includes a detailed description of the property being mortgaged, including its legal description, address, boundaries, and any other pertinent details that accurately identify the property.

3. Loan Amount and Terms: The mortgage deed specifies the principal amount of the loan being borrowed by the mortgagor from the mortgagee. It also outlines the terms of repayment, including the interest rate, frequency of payments (e.g., monthly, quarterly), and the duration of the loan (e.g., 15 years, 30 years).

4. Rights and Responsibilities: The deed outlines the rights and responsibilities of both parties involved in the mortgage transaction. This includes the mortgagor's obligation to repay the loan according to the agreed-upon terms and the mortgagee's rights to foreclose on the property in the event of default.

5. Covenants and Conditions: Mortgage deeds often include covenants and conditions that govern the use and maintenance of the property, insurance requirements, and other obligations that both parties must adhere to during the term of the mortgage.

6. Signatures and Execution: Both the mortgagor and the mortgagee must sign the mortgage deed to indicate their agreement to its terms and conditions. In some jurisdictions, witnesses may also be required to witness the signing of the deed.

7. Delivery of Deed: The mortgage deed is delivered to the mortgagee, who retains it as evidence of the mortgage lien on the property. The mortgagor may also receive a copy of the deed for their records.

8. Repayment and Release: Once the loan is fully repaid according to the terms of the mortgage, the mortgagee releases the mortgage lien on the property by executing a release or satisfaction of the mortgage document, which is recorded with the appropriate government office to clear the property title.

9. Stamp Duties on Registration

   • Mortgage Deed without Possession, Further Charge for mortgage deed without possession, Settlement Deed, Partition Deed, etc. 1.5%

   • Equitable Mortgage/deposit of title deed, pawn, or pledge [0.2445% if such loan is repayable on demand or in more than three months. 0.12225% if such loan is repayable in not more than three months.]

10. Memorandum of Entry 

11. If the mortgage has been reduced to writing as in a memorandum, then such document also becomes integral to the transaction and an essential ingredient in creation of mortgage and such a memorandum is considered as the only repository and evidence of the agreement, then the memorandum would be the instrument by which the equitable mortgage was created and would be registrable. If the writing evidences the agreement, then it is deemed that the parties have agreed for the writing to act as the repository of the agreement. Stamp duty is not chargeable on a transaction, it is chargeable on the instrument.  

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