Agreement to Mortgage
Agreement is made at ____ this ________ day of
______ between Mr. A residing at __________ hereinafter referred to as the
‘Mortgagor’ of the One Part and M/s AB & Co. a partnership firm consisting
of (1) ___ (2) ___ (3) ___ as partners carrying on business at ______
hereinafter referred to as the ‘Mortgagees’ of the Other Part ;
Whereas –
1. The Mortgagor owns an immovable property
consisting of a plot of land with a building thereon and situated at ______ and
which is more particularly described in the Schedule hereunder written.
2. The Mortgagor is in need of money for paying certain business
debts and liabilities and has, therefore, approached the Mortgagees to advance
to him a loan of Rs. ____ which the Mortgagees have agreed to do on the
following terms and conditions :
Now It Is Agreed Between The Parties Hereto As
Follows :
1. The Mortgagees agree to lend to the Mortgagor
and the Mortgagor agrees to borrow from the Mortgagees a sum of Rs. ______. The
Mortgagor agrees that he will pay interest on the said sum at the rate of ____
percent per annum from the date of advance till repayment thereof by the
Mortgagor to the Mortgagees.
2. The interest at the rate aforesaid will be paid
every three months that is with quarterly rests and in the event of default in
paying interest as aforesaid the Mortgagees will be entitled to charge interest
on the amount of interest in arrears by way of compound interest at the same
rate as aforesaid so that the interest in arrears will be capitalised by way of
compound interest carrying interest thereon as aforesaid. This, however, will
be without prejudice to the right of the Mortgagees to take action for recovery
of the mortgage debt and the interest in arrears by any process of law
available to them, in the event of default in payment of interest every quarter
as aforesaid.
3. The said principal amount will be repayable with
interest as aforesaid within ___ years from the date of advance.
4. The repayment of the said amount of principal
and interest and all costs, charges and expenses becoming payable by the
Mortgagor will be secured by a first mortgage of the said property described in
the Schedule hereunder written.
5. The said principal sum of Rs. ___ will be
advanced and paid by the Mortgagees to the Mortgagor on the execution of the
Deed of Mortgage by the Mortgagor in favour of the Mortgagees.
6. The Deed of Mortgage will be in the form of
English mortgage and will contain all the covenants, powers, provisions, terms
and conditions as are usually contained in such deed and as will be advised to
be incorporated by the Mortgagees’ Advocate.
7. The Mortgagor will make out a clear and
marketable title to the said property, free from encumbrances and claims and the
Mortgagor shall produce to the Mortgagees’ Advocate for inspection all the
title deeds in his possession or power.
8. Within eight days from the date hereof the
Mortgagor shall produce to the Mortgagees’ Advocate for inspection all the
title deeds in his possession or power.
9. If any other person or persons is found
interested in the said property, the Mortgagor will either obtain the release
of such interest by a proper deed of release or will procure his signature to
the Deed of Mortgage as a Mortgagor the intention being that the loan will be
advanced on the security of the said property as a whole and not on any
interest therein.
10. The transaction of mortgage will be completed within a period of
three months from the date hereof. If the transaction is not so completed then,
without prejudice to the right of the Mortgagees to terminate this agreement,
the Mortgagees will be entitled to charge interest at the rate aforesaid on the
said amount of principal from the expiration of the said period till the
execution of the Deed of Mortgage and the same will be deducted from the
principal amount, unless it is separately paid by the Mortgagor.
11. The Mortgagor will also execute any other documents, by way of
declaration or otherwise as will be required by the Mortgagees’ Advocate to
safeguard the interest of the Mortgagees.
12. The Mortgagor declares that the said property is not subject to
any reservation or acquisition or any litigation and no notice for heavy
structural repairs, or acquisition or requisition or reservation has been
received by him.
13. If the title is not made out marketable as aforesaid or the
Mortgagor fails to complete the transaction by execution of the Deed of
Mortgage and any other documents as aforesaid within the said period or any
further period extended by the Mortgagees, or commits breach of any term of
this agreement, the Mortgagees will be entitled to cancel this agreement by
fifteen days prior notice to the Mortgagor or his Advocate.
14. In the event of termination of this agreement as aforesaid or on
completion of the mortgage transaction all the costs, charges and expenses
incurred by the mortgagees of an incidental to this agreement will be payable
by the Mortgagor alone. As a security for such payment the Mortgagor shall
deposit with the Mortgagees’ Advocate a sum of Rs. _____ on the execution of
this agreement. All Stamp duty and registration charges of the Deed of Mortgage
and other documents if any, will be paid by the Mortgagor alone.
15. Before execution of the
Deed of Mortgage the Mortgagor and all other persons executing the Deed will
obtain their respective Income Tax Certificates under section 230A of the
Income Tax Act if it is required to be obtained for registration of the Deed.
IN WITNESS WHEREOF the Parties have put their
hands the day and year first hereinabove written.
The Schedule above referred to
Signed and delivered by the
withinnamed Mortgagor Mr.
in the presence of ___
Signed and delivered for and
on behalf of the withinnamed
Mortgagees M/s AB & Co. by
their authorised partner
Mr. _____ in the presence of
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