A property mortgage agreement template is a legal contract between a mortgager and a mortgagee. In which the mortgagee or the buyer takes a loan from the mortgager and agrees to pay it back in a specific time period. The agreement states different terms for the loan and its return payment along with the amount of interest that will be paid along with the debt. It clarifies the general as well as special terms and conditions which a buyer needs to follow. However, the lender is supposed to deeply review this agreement and agree to the terms and conditions after considering each and every term.
Importance of Property Mortgage Agreement
A property mortgage agreement is generally provided by the lender to further give it to the debtor. It shows that it is a highly professional and legal document that must not be taken lightly. It should be agreed to in all seriousness. If the borrower has any objection or wishes to increase the loan return time, he/she can submit a request to the lender. After reviewing the request and the loan policies, the lender can start negotiation with the borrower regarding increasing loan life.
Content of Property Mortgage Agreement
The property mortgage loan agreement is prepared by the lender to make sure, all conditions are provided for the borrower, so he/she can read it well, before signing it. Almost all lenders, including banks, financial institutions, use the same format and add the same contents in every property mortgage agreement. Excluding the personal details of both parties. Nevertheless, a mortgager can easily fabricate their property mortgage agreement. This can be done by keeping in mind some of the major terms that are included in all property mortgage agreements are as follows:
1. The date on which the agreement will be made effective.
2. Introduction of both parties along with their contact numbers and home address.
3. Write down the justification for preparing this agreement.
4. Terms on which the mortgagee has agreed and will comply with them. This includes all the specific terms and conditions, such as the repayment date or monthly date (if paid by installments) and the interest amount, the exact amount of loan that will be returned, and the payment method. All in all, this is the most descriptive part of the agreement.
5. The confidentiality terms are stated almost at the end of the agreement. This explains to the mortgagee that mortgages provided to them in this document will be strictly confidential.
6. Lastly, the measures that will be taken if the mortgagee agrees to the agreement yet do not fulfill any of their responsibilities. This usually results in violation of the law which cause implementation of fines on the mortgagee and jail in extreme circumstances.
Details of Property Mortgage Agreement
Both the parties are required to sign the agreement to show their consent and initiate the agreement. Once this agreement has been signed, it legally binds all the parties together. Now they can only be free from this agreement once the loan has officially been paid back to the mortgager and the agreement is completed.
Templates for Property Mortgage Agreement
Source: ihda.org
Source: kydlgweb.ky.gov