Private Mortgage Agreement Template

This Private Mortgage Agreement (the “Mortgage”) is made as of [Effective Date] by:

Borrower/Mortgagor: [Borrower Full Legal Name], address: [Address] (“Borrower”).
Lender/Mortgagee: [Lender Full Legal Name], address: [Address] (“Lender”).

Borrower and Lender may be referred to individually as a “Party” and collectively as the “Parties.”

1. Secured Loan and Note

1.1 Promissory Note. This Mortgage secures the repayment obligations under a promissory note dated [Note Date] in the principal amount of $[Amount] (the “Note”).
1.2 Loan Terms Summary (Reference). Interest: [__]% per year. Payment schedule: [Monthly/other]. Maturity date: [Date].
1.3 No Waiver. The Note controls repayment terms; this Mortgage controls the security interest in the Property.

2. Property

2.1 Property Address. [Street address].
2.2 Legal Description. [Insert legal description / attach Exhibit A].
2.3 Ownership. Borrower represents they have lawful title to the Property and the right to mortgage it.

3. Grant of Mortgage

3.1 Borrower mortgages and grants Lender a security interest in the Property, together with fixtures and improvements, to secure the Note and all obligations under this Mortgage.

4. Payments

4.1 Borrower will make payments as required by the Note.
4.2 Late Fees. Late fees apply as stated in the Note (if any).

5. Taxes, Insurance, and Assessments

5.1 Property Taxes. Borrower will pay all property taxes and assessments when due.
5.2 Insurance. Borrower will maintain hazard insurance on the Property in an amount reasonably acceptable to Lender and name Lender as loss payee/mortgagee as required.
5.3 Proof. Borrower must provide proof of payment/coverage upon request.

6. Maintenance and Use

6.1 Borrower will maintain the Property in good condition and avoid waste.
6.2 Borrower will not commit or permit illegal activity on the Property.

7. Transfers and Additional Liens

7.1 Due-on-Sale (Optional). If Borrower sells or transfers any interest in the Property without Lender’s written consent, Lender may declare the Loan immediately due, where permitted.
7.2 Borrower will not place additional liens on the Property without Lender’s consent, except permitted liens: [List].

8. Default

8.1 Events of Default. Default includes: failure to pay, failure to maintain insurance, unpaid taxes, unauthorized transfer, or other material breach.
8.2 Notice and Cure (Optional). Borrower has [__] days to cure after notice, if required by law.
8.3 Remedies. Upon default, Lender may exercise remedies allowed by law, including foreclosure or sale of the Property, subject to legal procedures.

9. Lender Protection (Optional)

9.1 If Borrower fails to pay taxes/insurance or protect the Property, Lender may (but is not required to) pay those amounts and add them to the Loan balance, where permitted.

10. Release / Satisfaction

10.1 When the Note is fully paid, Lender will execute a release/satisfaction of mortgage within a reasonable time, as required by law.

11. Recording (Recommended)

11.1 The Parties agree this Mortgage may be recorded in the public records of [County/Registry] to provide notice of Lender’s interest.

12. Notices

12.1 Notices must be in writing and delivered to the addresses above.

13. Governing Law

13.1 This Mortgage is governed by the laws of [State/Country].

14. Entire Mortgage

14.1 This Mortgage and the Note are the entire agreement regarding the secured loan.

Signatures

By signing below, the Parties agree to this Private Mortgage Agreement as of the Effective Date.

Borrower/Mortgagor: [Full Name]
Date: [Date]
Signature: ___________________________

Lender/Mortgagee: [Full Name]
Date: [Date]
Signature: ___________________________

Witnesses (If Required)

Witness #1 Name: [Name]
Date: [Date]
Signature: ___________________________

Witness #2 Name: [Name]
Date: [Date]
Signature: ___________________________

Notary / Notarization (If Required)

State of [State]
County of [County]

On [Date], before me, [Notary Name], personally appeared [Borrower Name] and [Lender Name], known to me (or satisfactorily proven) to be the persons whose names are subscribed to this Mortgage, and acknowledged that they executed it for the purposes stated.

Notary Public Signature: _______________________
My Commission Expires: _______________________
Notary Seal (if applicable): ___________________