SAMPLE OF A DEED OF MORTGAGE

(covering commencement, testatum, and consideration clauses)

Commencement - THIS DEED OF MORTGAGE is made this ………. day of ………….. 20…. BETWEEN (name of the borrower) of …………………………….. (address) (“the mortgagor”) of the one part AND (name of lender) of …………………………….. (address) (“the mortgagee”) of the other part.

THIS AGREEMENT RECITES AS FOLLOWS:

1.      By a lease dated the …………………… day of …………… 20….. between (the lessor) of one part and the mortgagor (original lessee) of the other part, the said lessor demises to the mortgagor the property described in the scheduled attached below for a term of ………….. years at ……………. Rent per annum and subject to the performance and observance of the lessee’s covenants and conditions contained here.

Testatum - NOW THIS DEED WITNESSES AS FOLLOWS:

1.      The mortgagor as beneficial owner conveys to the mortgagee ALL THAT parcel of land located at ……………………… (address).

2.      The mortgagor has agreed with the mortgagee to mortgage the residue of the term of years less one day as security for a loan of ………………. (amount) subject to censer on redemption.

Consideration clause –

In consideration of the sum of ……………… (amount) paid by the mortgagee to the mortgagor, the receipt of which the mortgagor acknowledges.

IN WITNESS of which the parties have set their hands and seals the day and year written above.

SIGNED, SEALED AND DELIVERED by the within named …………………….

IN THE PRESENCE OF:

Name……………………………………………………………………………

Address…………………………………………………………………………

Occupation………………………………………………………………………

Signature…………………………………………………………………………