What Is a Hypothecation Agreement?

A mortgage contract is a guaranty contract signed by a mortgagee (usually a creditor) and a mortgagor (either a debtor or a third party). The mortgagor sets a mortgage guarantee to the mortgagee with a certain amount of property (either real estate or movable property). When the debtor is unable to perform the debt, the mortgagee can give priority to compensation for the proceeds from the disposal of the mortgaged property according to law.

Mortgage contract

Chinese name: Mortgage contract
Foreign name: mortgage contract
Related people: Mortgagee and mortgagor

Category: contract
Pinyin: di ya he tong
Related field: legal

When applying for a mortgage contract, the notary office has stricter requirements on the examination of the mortgagor's subject qualification and collateral. According to regulations, the collateral is

Mortgage is a guarantee provided by a debtor or a third party for a creditor's right without transferring possession of the property. In commercial activities, the circulation of mortgage guarantee transactions is frequent, resulting in numerous economic disputes. How to formulate a mortgage guarantee contract with risk prevention benefits is particularly important.

I. Clearly signing the mortgage contract

1. Content of mortgage contract

The mortgage contract should include the following:

the name of the mortgagor and mortgagee or the name and address of the individual;

the type and amount of the main creditor's right;

the specific conditions of the mortgaged property;

the value of mortgaged property;

The time limit for the debtor to perform the debt;

Conditions of loss of mortgage;

Liability for breach of contract;

Dispute resolution method;

The time and place at which the mortgage contract is concluded;

Other matters agreed by both parties.

2. Form of mortgage contract

Mortgage can be set up in the main credit contract, or a separate mortgage contract can be signed, but all must be in writing. Mortgage contracts are mandatory contracts.

Effect of mortgage contract

Mortgage rights are the protection of creditor's rights. They appear only when creditors' rights cannot be realized. The mortgage contract is subordinate. When the main contract, that is, the debt contract, is invalid, the mortgage contract is also invalid. Therefore, the validity of the main contract needs to be clarified when signing the mortgage contract.

Changes and termination of mortgage contracts

1. Alteration of mortgage contract

If the mortgage contract is changed, a written mortgage change contract shall be signed. The changes to the mortgage contract require the mortgagor and the mortgagee to reach consensus before they can be changed.

2. Termination of mortgage contract

The mortgage contract can stipulate the reasons for termination, and the general termination is as follows:

The debt guaranteed by the mortgage has been fulfilled;

The mortgage contract is cancelled;

Creditors forgive debts;

Other circumstances stipulated by law or the parties agreed to terminate.

Fourth, other matters needing attention

1. Matters not stipulated in the mortgage contract

According to Article 40 of the "Guarantee Law", when entering into a mortgage contract, the mortgagee and the mortgagor must not agree in the contract that the ownership of the mortgaged property shall be transferred to the creditor when the mortgagee is not cleared at the end of the debt performance period.

2. Custody of rights certificates

The mortgage contract may stipulate that the relevant right certificates such as real estate deeds shall be properly kept by the mortgagee.

3. Mortgage subject insurance

If the subject matter of the mortgage is real estate such as real estate, ships, etc., the parties to the mortgage contract may agree to insure the subject matter. During the mortgage period, the mortgagee is the first beneficiary of insurance compensation. In this way, the mortgagee's creditor's rights are realized to the greatest extent.

It can also be agreed that the mortgagor guarantees that the mortgaged property provided does not have undisclosed joint and controversial conditions. If the mortgagee causes losses to the mortgagee due to the foregoing, the mortgagor shall bear corresponding compensation liabilities.

4. Mortgage costs

Mortgage contracts can clearly specify who should handle mortgage registration and insurance costs to avoid disputes.

5. Pay attention to the registration procedures of the subject matter of mortgage

According to the law, some mortgages must go through mortgage registration procedures before the mortgage right can take effect. If a house or land is mortgaged, it shall apply to the relevant department for mortgage registration.

Note that different collateral is different for the registration authority.

If the land use right is mortgaged, the registration department is the land management department that issues the land use right certificate;

If the building is mortgaged, the department stipulated by the local people's government at or above the county level is the registration department;

If the forest is mortgaged, the registration department is the forest department in charge at or above the county level;

For vehicles and ships mortgaged, the registration department of the means of transport is the mortgage registration formalities;

Where movable property is mortgaged, the administrative department for industry and commerce is the registration department.

In summary, when signing a mortgage contract, you should pay attention to the agreement to handle mortgage registration. Different mortgage registration agencies are different. When signing a mortgage contract, you should handle it in accordance with legal regulations to avoid causing legal disputes and harming the interests of both parties.

1.General mortgage contract template

Contract No:_______________

Contract signing date: ___________

Contract signing place: ___________

Mortgage (hereinafter referred to as Party A): _________________________________________

Mortgagee (hereinafter referred to as Party B): ________________________________________

To ensure contract ________ (hereinafter referred to as

First, the right to receive interest

Second, the mortgagor has certain punishment rights, such as the ability to continue to set up a mortgage, and can be transferred with consent.

Third, it can be rented.