Table of Contents

1. FAQs on Mortgage Deed in India

2. Sample


FAQs on Mortgage Deed in India

  1. What is a Mortgage Deed?

    A mortgage deed is a legal document that creates a charge on immovable property to secure a loan. The borrower (mortgagor) transfers an interest in property to the lender (mortgagee) as security for the loan.

  2. What are the types of mortgages under Indian law?

    Under Section 58 of the Transfer of Property Act, 1882, there are six types of mortgages:

    1. Simple Mortgage

    2. Mortgage by Conditional Sale

    3. Usufructuary Mortgage

    4. English Mortgage

    5. Mortgage by Deposit of Title Deeds (Equitable Mortgage)

    6. Anomalous Mortgage

  3. Is registration of mortgage deed mandatory?

    Yes, for a simple mortgage (like the one above), registration is compulsory under the Registration Act, 1908 and stamp duty is payable as per the state-specific laws.

  4. Can the mortgagee take possession of the property?

    In a simple mortgage, possession remains with the mortgagor unless the mortgagor defaults, in which case the mortgagee can approach the court for sale of property.

  5. What happens if the loan is repaid?

    Once the loan and interest are fully repaid, the mortgage deed becomes void. A reconveyance deed or deed of release can be executed to formally cancel the charge.

  6. Can a mortgaged property be sold by the mortgagor?

    Not without the mortgagee’s consent. Any sale without disclosing the mortgage interest would be subject to the mortgagee’s rights.

  7. How is the mortgage deed enforced in case of default?

    In a simple mortgage, the mortgagee must file a civil suit for sale of the mortgaged property under Order 34 of the Civil Procedure Code, 1908.


Sample

(Simple Mortgage as per Section 58(b), Transfer of Property Act, 1882)

This Mortgage Deed is made on this 8th day of May, 2025, at New Delhi,


Between
Mr. Ramesh Kumar, son of Late Sh. Sohan Lal, residing at 56, Rajendra Nagar, New Delhi – 110060, hereinafter referred to as the Mortgagor (which term shall, unless repugnant to the context, include his heirs, legal representatives, executors, administrators and assigns)
AND
Mrs. Kavita Sharma, wife of Sh. Arun Sharma, residing at 21, Greater Kailash-I, New Delhi – 110048, hereinafter referred to as the Mortgagee (which term shall, unless repugnant to the context, include her heirs, legal representatives, executors, administrators and assigns).


WHEREAS
The Mortgagor is the absolute owner and in possession of the immovable property bearing House No. 56, Rajendra Nagar, New Delhi, measuring 250 square yards, free from all encumbrances.

The Mortgagor has requested the Mortgagee for a loan of Rs. 25,00,000/- (Rupees Twenty-Five Lakhs only), which the Mortgagee has agreed to lend on the security of the said immovable property by way of simple mortgage.


NOW THIS DEED WITNESSETH AS FOLLOWS:

  1. Loan and Interest:

    The Mortgagee has this day advanced a sum of Rs. 25,00,000/- (Rupees Twenty-Five Lakhs only) to the Mortgagor, which the Mortgagor acknowledges and promises to repay along with interest at the rate of 10% per annum, compounded annually.

  2. Mortgage and Security:

    The Mortgagor hereby mortgages by way of simple mortgage the said immovable property, i.e., House No. 56, Rajendra Nagar, New Delhi, in favour of the Mortgagee, as security for repayment of the said loan with interest.

  3. Covenant to Pay:

    The Mortgagor covenants with the Mortgagee to repay the said loan along with interest within a period of three years from the date hereof, i.e., on or before 8th May 2028.

  4. Right to Sell:

    In case of default, the Mortgagee shall have the right to cause the mortgaged property to be sold through court proceedings and recover the loan amount and interest from the sale proceeds, as provided under Section 69 of the Transfer of Property Act.

  5. Possession:

    The possession of the mortgaged property shall remain with the Mortgagor, and he shall be entitled to use and enjoy the property until default occurs.

  6. Costs and Expenses:

    The Mortgagor shall bear all stamp duty, registration charges, and other incidental costs related to this deed.

  7. Covenant of Title:

    The Mortgagor assures that the property is his self-acquired and free from encumbrances, claims, and litigations.

  8. Miscellaneous:

    All disputes arising out of or relating to this Mortgage Deed shall be subject to the exclusive jurisdiction of the courts at New Delhi.


IN WITNESS WHEREOF, the parties hereto have signed this Mortgage Deed on the day, month, and year first above written.


Signed and Delivered by:

Mr. Ramesh Kumar (Mortgagor)

(Signature) _________________


Mrs. Kavita Sharma (Mortgagee)

(Signature) _________________


Witnesses:

Name: Mr. Sunil Mehra

Address: 34, Patel Nagar, New Delhi

Signature: __________________


Name: Ms. Neha Agarwal

Address: 78, Lajpat Nagar, New Delhi

Signature: __________________