MORTGAGE DEED Meaning and
Definition
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A mortgage deed refers to a legal document that serves as evidence of a mortgage loan and is used to transfer ownership interest of a property to a mortgage lender as security for the loan. It is a vital component of the mortgage process, outlining the rights and responsibilities of both the lender and the borrower.
The mortgage deed typically includes crucial information such as the names of the borrower and the lender, a description of the property being mortgaged, and the terms and conditions of the loan agreement. It clearly outlines the main provisions, such as the loan amount, interest rate, repayment schedule, and any applicable penalties or fees.
Once the mortgage deed is signed, it becomes a legally binding contract and establishes a lien on the property. This means that the lender has the right to foreclose on the property and sell it in case of default by the borrower.
Mortgage deeds are typically recorded in the local land records office or registry, providing public notice of the mortgage lien and ensuring priority among multiple creditors. This protects the lender's interests and informs potential buyers or lenders about prior encumbrances on the property.
In summary, a mortgage deed is a legal document that formalizes the mortgage loan agreement. It outlines the terms and conditions of the loan, establishes a lien on the property, and provides public notice of the mortgage.
Common Misspellings for MORTGAGE DEED
- nortgage deed
- kortgage deed
- jortgage deed
- mirtgage deed
- mkrtgage deed
- mlrtgage deed
- mprtgage deed
- m0rtgage deed
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- mo5tgage deed
- mo4tgage deed
- morrgage deed
- morfgage deed
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- morygage deed
Etymology of MORTGAGE DEED
The word "mortgage" originated from the Old French term "mort gaige", which translates to "dead pledge" in English. This term was used to describe a situation in which a borrower would make a pledge or promise to repay their loan using their land or property as collateral. The term "mort" in Old French means "dead", indicating that the pledge would be nullified (or "dead") once the loan was repaid. "Gaige" comes from the Latin word "pignus", meaning "pledge". Over time, "mort gaige" evolved to "mortgage" in English, retaining its original meaning. The word "deed" refers to a legal document that serves as proof of ownership or a right to property. Therefore, a "mortgage deed" refers to the legal document that outlines the terms and conditions of a mortgage loan and the rights and obligations of the borrower and lender.
Similar spelling words for MORTGAGE DEED
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