A mortgage contract is a contract agreement made when a person takes loan to buy a real estate property or a house. It gives a detailed account of the size of the mortgage, maturity of the loan, interest rates, time space and method of paying the amount.
Sample Mortgage Contract:
The mortgage contract is made between the MORTGAGOR Hill Banks represented by Mr. Yuan Rex and the MORTGAGEE Mr. David Clooney on the 5’Th day of October of the year 2010.The agreement is signed by the parties at the LA branch of the Hill banks.
Address: 5th , Tim street LA
Address of property: 12, West Greg Street, LA
Account number: 23yt
The mortgagee agrees to repay the loan amount to hill banks in 6 months time by paying through equal monthly installments on an agreed rate of interest of 8% per annum.
Both the parties agree to the following:
- The mortgagor will pay the indebtedness amount whenever due promptly.
- Mortgagor will keep the buildings and improvement of the property, if any in case of loss due to fire in the name of mortgagee.
- Mortgagor shall not remove or demolish any building without the written consent of the mortgagee.
- Mortgagor will defend the title to the property against lawful demands.
- If any part of this document is invalid, the remaining provisions shall still remain in full force and effect.
- The installments must be paid within a week of each month and additional amount will be charged in case of late payment.
Yuan Rex David Clooney