Deed of Conveyance Subject to Mortgage Template India PDF/Word

About this agreement

Title: Deed of Conveyance Subject to Mortgage Format

Need a reliable Deed of Conveyance Subject to Mortgage format for transferring property in India while handling existing mortgages? Our ready-to-use, customizable legal template ensures smooth transactions, compliance with the Transfer of Property Act, 1882, and protects all parties involved.

A Deed of Conveyance Subject to Mortgage is a crucial legal document used in real estate transactions where the seller transfers ownership of immovable property to the buyer, but the property remains encumbered by an existing mortgage. Unlike standard sale deeds, this format explicitly states that the conveyance is 'subject to mortgage,' meaning the buyer accepts the property with the lender's lien intact. This is common in India when sellers cannot clear mortgages before sale, allowing buyers to assume payments or negotiate terms with the lender.

Why is a Deed of Conveyance Subject to Mortgage Format Important?

In Indian property law, registering a conveyance deed is mandatory under the Registration Act, 1908, to make the transfer legally valid. This format is vital because:

It safeguards the mortgagee's (lender's) rights, preventing unauthorized clearance of the lien.
It informs the buyer of all financial liabilities, reducing disputes.
It meets court and revenue authority requirements for stamp duty and registration.
It provides transparency in transactions involving bank loans or housing finance.

Using a professional Deed of Conveyance Subject to Mortgage sample minimizes risks like title disputes or lender claims, saving time and legal costs. Ideal for quick closings in residential, commercial, or agricultural property deals.

Key Elements of a Deed of Conveyance Subject to Mortgage Format

Our Deed of Conveyance Subject to Mortgage template includes all essential sections for legal robustness:

Parties Involved: Full details of the vendor (seller), vendee (buyer), and mortgagee (lender), including names, addresses, and PAN.
Property Description: Precise details like survey number, boundaries, area, and built-up space.
Recitals: Background on the mortgage, including loan amount, date, lender, and outstanding balance.
Consideration and Payment: Sale price, mode of payment, and adjustments for mortgage balance.
Subject to Mortgage Clause: Clear statement that transfer is subject to existing mortgage; buyer may assume liability.
Covenants and Warranties: Seller's assurances on title (except mortgage), no other encumbrances, and peaceful possession.
Stamp Duty and Registration: Provisions for payment and execution.
Signatures and Witnesses: Spaces for notarization and attestation.

This comprehensive structure ensures your Deed of Conveyance Subject to Mortgage format is court-ready.

Who Should Use This Deed of Conveyance Subject to Mortgage Sample?

Property sellers with ongoing home loans or mortgages unable to pay off before sale.
Buyers interested in discounted properties due to encumbrances.
Real estate developers, investors, or NRIs dealing with financed properties.
Common in civil matters like housing society transfers, commercial leases turning to sales, or family partitions with loans.

Perfect for pan-India use, from Maharashtra to Karnataka, compliant with state-specific stamp rules.

Download Your Customizable Deed of Conveyance Subject to Mortgage Template Today!

Get instant access to our free downloadable Deed of Conveyance Subject to Mortgage format in PDF or Word. Edit easily with our AI tool or seek legal customization for your specific needs. Paid premium options offer lawyer-reviewed versions for ultimate peace of mind.

Important Note: While this Deed of Conveyance Subject to Mortgage sample is designed as a ready-to-use legal template, always customize it to your situation and consult a qualified lawyer or property expert. It's not a substitute for professional legal advice. Explore related templates like Sale Deed Format, Mortgage Deed, or Gift Deed for more options. Ensure proper stamping and registration at your local sub-registrar office for validity in India.

DEED OF CONVEYANCE SUBJECT TO MORTGAGE

Non-Judicial

DEED OF CONVEYANCE SUBJECT TO MORTGAGE

THIS DEED OF CONVEYANCE is made at ......... this ....... .... day of ... .................... Between Mr. 'A' of ...... ..... 1 ........... (hereinafter referred to as 'the Vendor') of the One Part, and Mr. 'B' of .................................. (hereinafter referred to as 'the Purchaser') of the Other Part..

WHEREAS the Vendor is seized and possessed of or otherwise well and sufficiently entitled to the land and premises situate at ???????.. and more particularly described in the Schedule hereunder written.

AND WHEREAS by a Deed of Mortgage dated the ... day of ... made between the Vendor therein referred to as the Mortgagor of the One Part and M/s AB & Co. a partnership firm by its partners (1)... (2)... (3)... therein referred to as the Mortgagees of the Other Part and registered at the office of the Sub Registrar at ... under S. No. . . .. of Book No.. . . . . I on the ... day of ... the Vendor has granted and conveyed the said land and premises unto the said Mortgagees to secure a sum of Rs.... lent and advanced by the Mortgagees to the Vendor and Interest thereon and other moneys becoming due and payable thereunder To Have And To Hold the said land and premises unto the said mortgagees, subject to the covenant for redemption and to the other terms, provisions and declarations therein contained.

AND WHEREAS the Vendor has agreed to sell the said property to the Purchaser subject to the said mortgage at the price of Rs ...... .. and has received from the Purchaser a sum of Rs ........ as earnest money on the execution of this agreement.

AND WHEREAS the Purchaser has requested the Vendor to execute these presents which he has agreed to do.

AND WHEREAS for the purposes of stamp duty the consideration is valued at ... ... market value is fixed at ........

NOW THIS DEED WITNESSETH that pursuant to the said agreement and in consideration of the sum of Rs.. . . paid as earnest money and the sum of Rs.. . . . paid on or before the execution of these presents, making together the said sum of Rs ...... .. agreed to be paid by the Purchaser to the Vendor (receipt whereof the Vendor hereby admits), He, the Vendor doth hereby convey and transfer by way of sale unto the Purchaser all that piece of land with the building and structures standing thereon situate at ..... .. In the Registration Sub District of ..... .. ..... ... and more particularly described in the Schedule hereunder written and delineated on the Plan thereof hereto annexed by red coloured boundary line TOGETHER WITH ALL the things permanently attached thereto or standing thereon and all the privileges, casements, profits, rights and appurtenances whatsoever to the said land and other premises or any part thereof belonging or anywise appertaining thereto and ALL the estate, right. title, interest, use, possession, benefit, claim and demand whatsoever at law or otherwise of the Vendor to the said piece of land and other the premises hereby conveyed and every part thereof TO HAVE TO HOLD the same unto and to the use and benefit of the Purchaser absolutely, and for ever but subject to the said mortgage hereinbefore recited and to all the liability thereunder And subject to the payment of all rents, rates, taxes, assessments. dues and duties now chargeable and payable and that may become chargeable and payable from time to time hereafter in respect of the same to the Government or the Municipal Corporation of ...... or any other public body or local authority In respect thereof

AND the Vendor doth hereby covenant with the Purchaser that,

The Vendor now has in himself good right full power and absolute authority to convey and transfer by way of sale the said piece of land, and other the premises hereby conveyed or intended so to he unto and to the use of the Purchaser in the manner aforesaid.,
Subject to the said mortgage the Purchaser may from time to time and at all times hereafter peaceably and quietly enter upon, occupy. or possess and enjoy the said land, and premises hereby conveyed with their appurtenances. and receive the rents, issues and profits thereof and every part thereof for his own use and benefit without any suit, lawful eviction or Interruption. claim and demand whatsoever from or by him the Vendor or his heirs or any of them or by any person or persons claiming or to claim, from, under or in trust for him or any of them;
Subject to the said mortgage the Purchaser shall hold the said land and premises free and clear and freely and clearly and absolutely exonerated, and forever released and discharged or otherwise by the Vendor and well and sufficiently saved, defended, kept harmless and indemnified of from and against all former and other estates, titles, charges and encumbrances whatsoever had made, executed. occasioned and suffered by the Vendor or by any other person or persons claiming or to claim by, from, under or in trust for him;
The Vendor and all persons having or claiming any estate, right, title, or interest In the said land, and premises hereby conveyed or any part thereof by, from, under or In trust for the Vendor or his heirs, executors, administrators or any of them shall and will from time to time and at all times hereafter at the request and costs of the Purchaser do and execute and cause to be done and executed all such further and other lawful acts. deeds, things, conveyances and assurances in the law whatsoever for the better and more perfectly and absolutely granting the said land, and premises and every part thereof hereby conveyed unto and to the use of the Purchaser In manner aforesaid as by the Purchaser, his heirs, executors or administrators and assigns shall be reasonably required.

And the Purchaser doth hereby covenant with the Vendor that the Purchaser will pay all the principal amount with interest thereon and all other moneys becoming payable under the said Deed of Mortgage hereinbefore recited and agrees to indemnify and keep indemnified the Vendor against all liability and loss. costs, charges and expenses that he may incur or suffer on account of his personal covenant to pay all the amount due and payable under the said Deed of Mortgage to the said Mortgagees.

IN WITNESS WHEREOF the Vendor has put his hand the day and year first hereinabove written.

THE SCHEDULE ABOVE REFERRED TO

(Description of the property)

SIGNED AND DELIVERED BY THE Vendor

Shri ..... .. in the presence of

Signed by the within named

Purchaser ..... .. in the presence of

RECEIVED THE day and year first hereinabove written from the above named Purchaser the sum of Rs ...... .. which together with the sum of Rs ...... . received as earnest money as aforesaid makes up the sum of Rs ........ being the full consideration to be paid by him to me.

Witness

1. .......................

2. .......................

I say received

Vendor.

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Important Guidelines

Guidelines for Drafting a Deed of Conveyance Subject to Mortgage:

Title: Begin with a clear title, such as "Deed of Conveyance Subject to Mortgage."
Parties: Identify the parties involved?the grantor (seller), grantee (buyer), and mortgage holder. Include their full legal names, addresses, and contact details.
Property Description: Provide a detailed description of the property being conveyed, including its physical address, boundaries, and any specific details that define the property.
Mortgage Details: Clearly state that the property is subject to an existing mortgage. Include the mortgage holder's information, the mortgage amount, the interest rate, and the remaining balance.
Assumption of Mortgage: Specify whether the buyer (grantee) is assuming the existing mortgage or obtaining new financing to pay it off.
Terms and Conditions: Outline the terms and conditions of the conveyance, including the purchase price, payment schedule, closing date, and any contingencies.
Default Terms: Define the consequences of default, both in terms of the conveyance and the mortgage. Include any grace periods, late fees, or the right of the seller to reclaim the property.
Warranties and Representations: Include any warranties or representations regarding the property's condition, title, and legal status.
Signatures: Ensure that all parties involved sign the deed in the presence of witnesses and a notary public to make it legally binding.
Legal Review: Have the deed reviewed by legal professionals to ensure compliance with local real estate laws and regulations.

Common Mistakes to Avoid:

Incomplete Property Description: Ensure the property description is accurate and complete to avoid boundary disputes.

Unclear Mortgage Details: Clearly specify the existing mortgage terms and the buyer's responsibilities regarding it.

Lack of Default Clause: Include provisions for default scenarios related to both the conveyance and the mortgage.

Failure to Notarize: Properly notarize the deed to ensure its legal validity.

Inadequate Legal Review: Consulting with a real estate attorney or legal expert can help avoid legal complications related to mortgage assumptions.

A Deed of Conveyance Subject to Mortgage is used when a property is sold, and the buyer agrees to take ownership subject to an existing mortgage. This document clarifies the responsibilities of all parties involved and helps protect their interests. Accurate documentation and legal review are crucial to prevent disputes and ensure a smooth transaction.

Frequently asked questions

What is a Deed of Conveyance Subject to Mortgage?→

This legal agreement in India transfers property ownership from seller to buyer while keeping the existing mortgage intact. The buyer takes the property subject to the mortgage lien under the Transfer of Property Act, 1882.

Is the Deed of Conveyance Subject to Mortgage valid in India?→

Yes, it is legally valid across India if properly executed, registered, and stamped as per state-specific laws under the Indian Stamp Act and Registration Act, 1908.

Do I need to pay stamp duty on a Deed of Conveyance Subject to Mortgage in India?→

Yes, stamp duty is applicable based on the property value and state rates (e.g., 5-7% in many states). Consult local sub-registrar for exact court fees and exemptions.

In what format can I download the Deed of Conveyance Subject to Mortgage?→

Download this customizable legal agreement in both editable Word and print-ready PDF formats for easy use in India.

Can I edit or customize the Deed of Conveyance Subject to Mortgage?→

Yes, this template is fully customizable. Edit details like parties, property description, and mortgage terms, but get it reviewed by a lawyer for legal compliance in India.

Who should use a Deed of Conveyance Subject to Mortgage agreement in India?→

Property sellers with outstanding mortgages and buyers willing to assume the loan should use this deed. Ideal for quick transfers without clearing the mortgage first.