DEED OF EXCHANGE OF MORTGAGED PROPERTIES

 

Date

_______________________________________________________________________ AND

_______________________________________________________________________

 

WHEREAS

The Party of the First Part is the sole owner of two immoveable properties described in the First and Second Schedules hereunder written.

BY A DEED OF MORTGAGE dated the day of ______________the Party of the First Part has mortgaged the said properties with the Party of the Second Part to secure a sum of Rs _________________advanced by the Party of the Second Part to the Party of the First Part.

As the Party of the First Part is unable to pay the said mortgage debt it is agreed between the Parties that the Party of the First Part shall grant and convey his right or equity of redemption in the said property described in the First Schedule hereunder written to the Party of the Second Part in exchange of the Party of the Second Part reconveying and releasing his right as mortgagee of the property described in the Second Schedule hereunder written so that the Party of the Second Part will become the sole owner of the property described in the First Schedule and the property described in the Second Schedule will be free from the mortgage and will belong to the Party of the First Part absolutely and thus the liability of the Party of the First Part to repay the mortgage debt to the Party of the Second Part will be satisfied and discharged.

 The market price of the equity of redemption of the Party of the First Part in the property described in the First Schedule is higher than the mortgage debt due to the Party of the Second Party by Rs. __________________.and therefore the Party of the Second Part has agreed to pay that amount of the Party of the First Part to equalise the share or interest in the properties exchanged.

 

NOW THIS DEED WITNESSETH that pursuant to the said agreement and in consideration of the Party of the Second Part releasing his mortgage claim on the properly described in the Second Schedule hereunder written and reconvening the said property to the Party of the First Part so that it will belong to the Party of the First Part freed from the said mortgage and in further consideration of the Party of the Second Part paying the sum of Rs._____________________ to the Party of the First Part on the execution of this document (receipt whereof the Party of the First Part doth hereby admit) he the Party of the First Part grant and convey to the Party of the Second Part the said property described in the First Schedule hereunder written that is his right of redemption therein together with all the things permanently attached thereto and standing thereon and all the privileges, liabilities, easements appurtenant thereto and all the estate right title and interest of the Party of the First Part into and upon the said property described in the First Schedule hereunder written 'To Have And To Hold the said property and all other premises granted hereby as aforesaid unto and to the use of the Party of the Second Part absolutely and forever and to the Intent that the equity of redemption of the Party of the First Part shall become merged in the interest of the Party of the Second Part as mortgagee so that the said property shall belong to the Party of the Second Part absolutely.

And this Deed further witnesseth that pursuant to the said agreement and in consideration of the Party of the First Part granting and conveying his all right title and interest as owner in the property described in the First Schedule hereunder written for the consideration and in the manner aforesaid he the Party of the Second Part in consideration aforesaid, doth hereby grant and recovery unto the Party of the First Part the property described in the Second Schedule hereby under written with all rights, easements and appurtenances. And all the estate right title and interest of the Party of the Second Part as mortgagee into and upon the said property described in the Second Schedule hereunder written. To Have and To Hold the same with its rights, easements and appurtenances unto and to the use of the Party of the First Part absolutely and forever freed and discharged of and from all the principal amount interest and other moneys intended to be secured by the said Deed of Mortgage hereinbefore recited and of and from all actions, suits, reckoning claims and demands whatsoever for upon or on account or in respect of the deed of mortgage. And the Party of the Second Part covenants with the Party of the First that he the party of the Second Part has not made done or executed or knowingly or willingly permitted suffered or been party or privy to any act deed or thing whereby or by reason whereof the said property described in the Second Schedule hereunder is or can be impeached affected or encumbered in title estate or otherwise howsoever.

AND THE PARTY OF THE FIRST PART covenants with the party of the Second Part that:

1. The Party of the First Part now has in himself good right full power and absolute authority to convey and transfer by way of exchange the said piece of land, and other the premises hereby conveyed or intended so to be unto and to the use of the Party of the Second Part in the manner aforesaid;

2. The Party of the Second part may from time to time and at all times hereafter peaceably and quietly enter upon, occupy, or possess and enjoy the said land, and premises described in the First Schedule hereunder written with their appurtenances, and receive the rents, issues and profits thereof and every part thereof for his own use and benefit without any suit, lawful eviction or interruption, claim and demand whatsoever from or by him the Party of the First Part or his heirs or any of them or by any person or persons claiming or to claim, from, under or in trust for him or any of them;

3. The Party of the Second Part shall hold the said land and premises described in the First Schedule free and clear and freely and clearly and absolutely exonerated, and forever released and discharged or otherwise by the Party of the first Part and well and sufficiently saved, defended, kept harmless and indemnified of from and against all former and other estates, titles, charges and encumbrances whatsoever had made, executed, occasioned and suffered by....or by any other person or persons claiming or to claim by, from, under or in trust for him;

4. The Party of the First Part and all persons having or claiming any estate, right, title, or interest in the said land, and premises hereby conveyed or any part thereof by, from, under or in trust for the Party of the First Part or his heirs, executors, administrators or any of them shall and will from time to time and at all times hereafter at the request and costs of the party of the Second Part do and execute and cause to be done and executed all such further and other lawful acts, deeds, things, conveyances and assurances in the law whatsoever for the better and more perfectly and absolutely granting the said land, and premises and every part thereof hereby exchanged unto and to the use of the Party of the second Part in manner aforesaid as by the party of the Second Part, his heirs, executors or administrators and assigns shall be reasonably required.

 

IN WITNESS WHEREOF THE PARTIES HAVE PUT THEIR HANDS THE DAY AND YEAR FIRST HEREIN BEFORE WRITTEN.

 

THE FIRST SCHEDULE ABOVE REFERRED TO

_______________________________________________________________________THE SECOND SCHEDULE ABOVE REFERRED TO

 

_______________________________________________________________________

Signed and Delivered by the within named 'A' Party of the 1st Part in the presence of Party of the 2nd Part in the presence of