What is a deed mortgage and how does it work? A ‘deed mortgage’ is an indispensable document in the Netherlands that is created as soon as a mortgage is taken out on a property, such as a house or flat. This deed is the official proof of the mortgage and includes all the terms and agreements between the mortgagee and the mortgage lender, usually a bank or other financial institution.
This document is crucial because it lays down all the rights and obligations of both parties. It sets out things like the mortgage amount, interest rates and the term of the loan. Moreover, it contains details about the security offered, such as the mortgage lender’s right to sell the property if the mortgagee cannot meet the payments.
Who prepares mortgage deeds?
Mortgage deeds are prepared by a notary and registered in the mortgage lender’s public register. This ensures transparency and openness, so everyone can see the details of the mortgage. This makes it clear what agreements and conditions apply to the mortgage and ensures the rights and obligations of both parties.
When is the mortgage deed drawn up?
A mortgage deed is created as soon as a mortgage is taken out on a property. This often happens when buying a property, where the buyer takes out a loan from a bank or other financial institution.
The mortgage deed serves as the official proof of the mortgage and contains all the agreements and conditions between the mortgagee and mortgage lender. It is therefore essential that this deed is drawn up before the mortgage is taken out. This way, the rights and obligations of both parties are established.
As with the creation, the deed of mortgage is registered by a notary in the public register of the mortgage lender. This allows anyone to consult the deed and view the details of the mortgage agreement. This ensures transparency and clarity, which is essential for proper compliance with the rights and obligations of both parties.
What is a deed of mortgage?
In a deed of mortgage, you will find important information such as the amount borrowed, the interest rate and the repayment period. It also contains details about the collateral, in this case, the house, and the mortgage lender’s rights if the mortgagee fails to fulfil its payment obligations.
Often, the deed also specifies the consequences in case of late payment or failure to fulfil other obligations included in the mortgage agreement. It is therefore very important to read the deed mortgage carefully before taking out the mortgage.
Importance of the mortgage deed
Thus, the deed mortgage is in the Netherlands very important when taking out a mortgage. It provides security for both the mortgagee and the mortgage lender and ensures clarity on the agreements made. It also provides a transparent overview of the rights and obligations of both parties and forms the legal basis of the mortgage agreement.
Different deeds
purchase deed
Deed of transfer
Cancellation deed (mortgage refinancing)
Other blogs for notary
What is a deed mortgage
What is the purchase agreement
What does a notary do?
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