land mortgage contract home mortgage contract Many people may wonder what it is. How does it relate to real estate? So in this article, we will take you to find out what a mortgage contract is. What can be mortgaged? And what should be in the mortgage contract? things you should know before signing the contract
What is a mortgage contract?
Many people may have heard of the terms 'home mortgage' or 'land mortgage' but may not be sure what a mortgage is . The law permits a mortgage to be registered with another person called "mortgagor" as collateral for payment of debt. However, the mortgagor does not have to deliver the said land or property to the mortgagee.
A mortgage contract is a type of loan agreement. where real estate is used as collateral for debt repayment, such as land title deeds, houses, condominiums, factories, warehouses, houses or other structures, etc. because real estate is a quality property never depreciates over time and unable to move make real estate Therefore, it is a stable guarantee.
In addition, who will be able to bring the property into a mortgage contract. Must be the owner of the property used for the mortgage only. and if not the owner of the property It must be authorized by the owner of the property directly. If not both of these The mortgage contract will not be effective immediately. In addition, the mortgage contract Must be done in front of the Land Department officials only. Therefore, be assured that forgery of documents for the purpose of the mortgage contract. It's not an easy thing to do.
What are the properties that can be contracted with a mortgage?
In addition to real estate assets that can be used as collateral for debt repayment There is another type of property that can be used in a mortgage contract , that is, ships, steamers, residential rafts. or an animal that is a vehicle but must be property that has been registered legally only
What are some things that you need to know before entering into a land mortgage contract?
- mortgage contract It is the use of securities as collateral for debt repayment only. which means will be just bringing the title deed to be used in the mortgage to register in front of the Land Department officials to keep as collateral There will be absolutely no transfer of any assets.
– Details in the mortgage contract Must specify clearly how much the mortgagee (lender) will borrow from the mortgagee (lender) Including details of the securities used in the mortgage that is. If not specified as follows The mortgage contract will not be completed immediately.
– In the event that the mortgagor (who asks for the loan) is unable to pay the agreed debt or there is a breach of the repayment contract It does not mean that the mortgagee (lender) will immediately seize the assets used in the guarantee. But there must be legal action. Since filing a lawsuit with the court In order for the court to issue a compulsory order for the debtor to sell the securities at auction at the Legal Execution Department , and then use the money to pay off the debt again.
What should be the details of a mortgage contract for a home mortgage?
| must-have topics | details |
| 1. Property details | The details of the property to be mortgaged must be clearly stated, for example, if it is a land mortgage contract, there must be a title deed number, land number, survey page, sub-district, district and province where the property is located. |
| 2. Details of the contract date | It must be stated that This contract was made on what date, what month, what year, and where the contract was made. Most of the locations are provincial land offices. |
| 3. Specify the name of the contracting party in the part of the mortgagor and the mortgagee. | Name is required National ID number, age, nationality, name of parents, house number, address and telephone number. of both parties clearly |
| 4. Details of the terms of the contract | for the agreement Must specify that the amount of this loan what is the amount What percentage interest is charged? When is the due date to pay off the debt? and clearly specify the number of times to pay interest if there is a default |
| 5. Name of the title deed holder during the mortgage | It is like a witness who holds a deposit as security. The contract will be made in 3 copies for the mortgagor, the mortgagee and the securities holders' witnesses. Keep one copy each. In each edition, it must be written to remind that Who is the holder of this edition? |
| 6. Signing a contract | At the end of the mortgage contract is signed. The person who signs the mortgage must consist of the mortgagee, the mortgagee, 2 witnesses (each party), the land officer, the contract writer. and contract inspector succeed |
How long does a land mortgage contract last?
The mortgage contract will be void or have no legal effect only when the mortgagee has paid the debt to the mortgagee in full. both loan and interest which is called no legal age Because it is an agreement between the creditor and the debtor who has witnesses. and have legal obligations only
however The mortgage contract can be completed early. In the event that the creditor has not received payment from the debtor for a period of time If the mortgagor defaults on payment Creditors can proceed as follows:
In the event that the debtor fails to pay or defaults on payment and want the property to be sold at auction
If the mortgagor fails to pay the debt as stipulated in the mortgage contract. Mortgages or creditors There must be a letter to warn the debtor first. If the debtor still ignores and refuses to pay the debt again The creditor will be able to proceed with the lawsuit with the court. and if the creditor will force the securities to be sold at auction There must be a letter notifying the debtor at least 1 month in advance.
In the event that the debtor fails to pay or defaults on payment and want the property to be supported from the debtor's rights
If the mortgagor fails to pay the debt as stipulated in the mortgage contract. Mortgages or creditors Will charge interest equal to the loan (about 15% per year) and if the debtor has failed to pay interest for 5 years, the creditor can go to file a lawsuit with the court. and if the creditor will force the securities to be sold at auction There must be a letter notifying the debtor in advance as well.
For the matter of the contract Land mortgages, even home mortgages, are not legally complicated. Because it is like a contract agreed between the creditor and the debtor only. which is suitable for people who have real estate as their property But wanting to borrow money without selling the property on hand, however, before making every mortgage contract, you should read the details of the agreement carefully. Be sure to check the number of the property that is being used for the mortgage and do not default on payments and interest. Otherwise, the property may be seized and sold at auction at the Legal Execution Department .
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