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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