I am Overseas Citizen of India (I hold citizenship of a Western Country) and own a few properties in India. One of my close relatives approached me for a substantial loan. I agreed to allow him to mortgage one of my property in India to one of my friends in India who has deep pockets. My relative agreed to repay the principal and interest directly to my friend. I ensured that if my relative cannot pay, I am able to do so myself in the worst case situation so my property remains protected. I just want to help my relative out with his business venture.
My relative emailed me a draft of a Mortgage in which there is this paragraph: "the mortgagor hereby grants and transfer by way of simple mortgage unto the mortgagee all the property described in the schedule III hereto. The said property hereby mortgaged shall remain and be charged by way of simple mortgage and free from all encumbrances as security for the payment to the mortgagee of the said principal money and interest in accordance with the convenants hereinbefore contained."
MY QUESTION: Is this a standard language used in Mortgage Agreements in India (or elsewhere)? Or can this be better worded? THANK YOU.
