Is the written agreement in the loan contract valid for the mortgage of the property?
In the loan contract, to protect its rights and interests, the lender often requires the borrower to provide a mortgage guarantee to ensure its interests. Many people will choose to provide a real estate mortgage, and a real estate mortgage is a contract. Is the written agreement in the loan contract valid? The following is the answer from the editor of the French website, I hope it will be helpful to you.
Is the written agreement in the loan contract valid for the real estate mortgage?
It is stipulated in the written loan contract that the house is mortgaged. If the mortgage registration is completed, the mortgage right is established and the house mortgage is valid.
“Civil Code of the People’s Republic of China”
Article 395 [Scope of Mortgage Property] The following properties that the debtor or a third party has the right to dispose of may be mortgaged:
(1) Buildings and other land attachments;
(2) Right to use construction land;
(3) the right to use the sea area;
(4) Production equipment, raw materials, semi-finished products, and products;
(5) Buildings, ships, and aircraft under construction;
(6) means of transportation;
(7) Other properties that are not prohibited by laws and administrative regulations from being mortgaged.
The mortgagor may mortgage the properties listed in the preceding paragraph together.
Article 402 [Registration of Real Estate Mortgage] If the property specified in Item 1 to Item 3 of Paragraph 1 of Article 395 of this Law or the building under construction specified in Item 5 of this Law is mortgaged, the mortgage shall be processed. Mortgage registration. A mortgage is created at the time of registration.
Where to apply for the real estate mortgage certificate
The real estate mortgage certificate may not be processed. Generally, the mortgaged real estate has a mortgage contract, so it is not necessary to apply for the mortgage certificate. If it needs to be processed under special circumstances, it is recommended to consult the local housing administration department, that is, where to apply for the real estate mortgage certificate depends on the In any region, within 30 days from the date of signing the real estate mortgage contract, the parties to the mortgage should go to the housing management department where the real estate is located to go through the real estate mortgage registration formalities, and the real estate mortgage contract will take effect from the date of mortgage registration.
The real estate mortgage contract
Mortgagor (borrower): _____________________________
address:__________________________________________
Mortgagee (Lender): ________________________ Bank
address:__________________________________________
According to the “General Principles of Civil Law of the People’s Republic of China”, “Contract Law of the People’s Republic of China” and the relevant business measures of the Bank of Communications, the mortgagor and the mortgagee signed the “Property Mortgage” on Loan Contract” (hereinafter referred to as the “Loan Contract”), hereby sign this Mortgage Agreement (hereinafter referred to as the “Agreement”).
1. Mortgage and mortgage registration
1. Interpretation:
(1) Off-plan house – refers to the commercial house that is still under construction. After paying the deposit or pre-sale money, the mortgagor has signed the “Pre-purchase House Contract” with the real estate developer and notarized by the notary office and obtained the pre-purchase right of the commercial house according to law.
(2) Existing house – refers to the completed commercial house. After paying the deposit, the mortgagor has signed the “House Sales Contract” with the real estate developer and obtained the right to purchase the commercial house by the law.
2. Mortgage:
The collateral for this item is a _________ with a building area of ________ square meters located in ___________________ purchased by the mortgagor from _________ (real estate developer). The sale price of the building square meter of the property is ________ yuan, a total of ________ yuan. The mortgagor has signed a _________ with the real estate developer on ________, ________, ________, and the mortgagee has been mortgaged accordingly.
3. Mortgage registration:
The mortgagor should mortgage the entire rights and interests of the “Pre-purchase House Contract” to the mortgagee, and complete the mortgage registration procedures with the Real Estate Administration. When the house is completed and delivered for use, the mortgagor authorizes the real estate developer to send the “House Completion Document” to the mortgagee, and entrusts the mortgagee or the agency designated by the mortgagee to obtain the “House Ownership Certificate” from the real estate management department, and handle the Complete the homeownership mortgage registration procedures. The “House Ownership Certificate” is managed by the mortgagee.
4. The expenses required to apply for the “House Ownership Certificate” and “House Land Use Right” shall be borne by the mortgagor.
5. The mortgagor hereby confirms that if the mortgagor cannot receive the “House Ownership Certificate” and “Land Use Certificate” for whatever reason, the mortgagor has the right to terminate the contract in advance, and can immediately claim all the arrears from the mortgagor.
2. Representations and warranties of the mortgagor
1. The collateral provided by the mortgagor is legally owned and exists by the mortgagor. During the validity period of this agreement, the mortgagor guarantees the safety and integrity of the collateral and agrees to accept the supervision and inspection of the mortgagee at any time.
2. The mortgagor guarantees that its act of providing collateral as collateral is legal and valid.
3. The collateral provided by the mortgagor has not been mortgaged or transferred to any third party. During the validity period of this agreement, the collateral shall not be leased, sold, transferred, gifted, escrow, re-mortgage, major modification or supplementation, or in other ways without authorization. Dispose of collateral.
4. The mortgagor hereby confirms that the mortgagor has the following rights: Before the mortgagor has paid off all the loan principal, interest, and related expenses under the “Loan Contract”, the mortgagor has the right to obtain the mortgage without the consent of the mortgagor. Assign all rights of the mortgagee under this agreement to a third party.
5. The above representations and warranties are always valid during the validity period of this agreement.
3. Use and inspection of collateral
1. The mortgaged real estate under this agreement is used by the mortgagor, and the mortgagor shall be responsible for the protection and management of the used real estate and pay all expenses incurred for the use of the real estate on time.
2. The mortgagee has the right to inspect the mortgaged property on a regular or irregular basis, and the mortgagor shall provide all conveniences.
4. Insurance
1. The mortgagor shall go to the insurance company designated by the mortgagee to complete the insurance procedures for the mortgaged property according to the time and the type of insurance specified by the mortgagee. The insured amount shall not be equal to the total value of the collateral, the insurance period shall be 1-3 months longer than the loan period, and the original insurance policy must indicate that the mortgagee is the first beneficiary.
2. Before the loan is repaid, the mortgagor shall not interrupt the insurance for any reason. If the mortgagor interrupts the insurance, the mortgagor has the right to apply for insurance on his behalf. All expenses and interests shall be paid by the mortgagor, and the mortgagor has the right to pay the mortgagor. recourse.
3. If the mortgaged property is accidentally damaged or lost, and the insurance company does not compensate according to law or the amount of compensation is insufficient to repay the amount owed by the mortgagor to the mortgagee, the mortgagee has the right to require the mortgagor to provide the mortgagee’s approval. The mortgagor should make up for it, otherwise, the mortgagor must repay all the arrears in advance.
V. Mortgage Release
Only after the mortgagor has paid off all the money owed to the mortgagor can go through the mortgage cancellation procedures, and the mortgagor will return the relevant certificates and documents under his control to the mortgagor.