Substantial requirements of Mortgage Deed

Parties
It is essential to specify the name of the mortgagor and the mortgagee in
the mortgage deed. The person who transfers the interest of his property
as collateral to take a loan is called mortgagor, whereas the person to
whom such interest is transferred is called the mortgagee. It must be
noted that the mortgagor must be competent to enter into a contract as
per under the Indian Contract Act, 1872 whereas the mortgagee may be a
minor. He may not be competent as per the Contract Law. 
Description of the Deed 
It is essential to specify the title of the deed in capital letters for example
“THE DEED OF MORTGAGE.”
Details of the property
In this clause, all the material description of the mortgaged property
should be specified. For e.g.: the location of the property, the value of the
property, its specification and all the material facts which need to be
disclosed should be mentioned. 
Recital
Recitals in a contract are the introductory statements disclosing the
intention of the parties to enter into the Contract. The recital is also called
the preamble containing a few characteristics of the agreement. It usually
starts with a sentence like “Whereas the mortgagor has
agreed” or “whereby the mortgagor has the rights”. 
Habendum
This particular clause determines the quality or extent of the interest of
the mortgagee and the mortgagor over the mortgaged property. The
provision defines the rights that the mortgagee is going to enjoy over the
property. It also restricts the rights of the mortgagee as per the
agreement.
Covenant for repayment
This clause specifies the modes and conditions for the repayment of the
loan amount. The clause also recites the consideration and tenure for the
repayment of the mortgaged money. It also specifies what are the
conditions when the mortgagor wants to pay the loan before the
stipulated time period.
Mortgage Clause
This clause highlights the type of Mortgage the parties have agreed. It is
the most important clause of the mortgage deed as all the rights and
duties of both the parties are dependent on the type of Mortgage by
which the property is being mortgaged. Say for example, in the English
Mortgage the mortgagee has the absolute right to sell the property. While
the simple mortgage possession of the property is not necessary. The
clause also describes the duty of the mortgagee and mortgagor like:
In case the mortgagee has repaired the property, he can claim the money
from the mortgagor if given in the Contract.
The mortgagor shall repay all the other costs.
If it is specifically mentioned in the clause that the mortgagor cannot
lease the mortgaged property without taking the prior permission of the
mortgagee, the former cannot do so without the consent of the latter.

Possession
The clause decided whether the mortgagor has the right to exercise
possession over the mortgaged property or not. It also depends upon the
type of Mortgage you are choosing to mortgage the property. E.g., in the
simple Mortgage, the possession may remain with the mortgagor. On the
contrary, in the Usufructuary Mortgage, the possession of the mortgaged
property must be delivered to the mortgagee.

Title deeds
The above clause clarifies as to what title deeds need to be transferred to
the mortgagee. If it is given in the clause that all the title deeds related to
the mortgaged property must be given to the mortgagee, then the
mortgagor shall transfer all the documents of the title deed to the
mortgagee.
 
Insolvency
This clause is an essential clause in the mortgage deed as it specifies the
treatment of mortgaged property in case the mortgagor is declared
insolvent. 

Required Documents
In this clause, all the documents which are necessary for making the deed
valid and identifying the parties are specified. For e.g.: PAN card, Adhar
card, Passport, Bank passbook, Property Documents, Voter’s ID, Driving
License.

Redemption clause
Redemption is again the most important and fundamental right possessed
by the mortgagor. It is an essential attribute of the transaction of the
Mortgage. It’s a statutory right given to the mortgagor under Section 60 of
the Act. The clause specifies the tenure of the mortgage deed as to when
the mortgagor is entitled to get his property back. The clause says that on
payment of the principal and interest after the expiry of the due date for
the repayment of money, how the property is supposed to go back to the
real owner of the mortgaged property.
 
Attestation and stamp duty
It is pertinent to state that the mortgage deed shall be duly registered and
stamped to have legal validity. In case of a Simple mortgage, if the deed
is not signed, registered and attested by at least two witnesses, it is
equivalent to not having a contract in the first place. The criteria of
attestation and registration depend upon the kind of Mortgage. There are
some kinds of mortgages that require no registration and attestation if the
principal money is less than 100 rupees. The nominal stamp fee must be
paid. The stamp fees depend upon the state the property is located.