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Small
Business Home >> Useful
Standard Legal Documents >>
Mortgage Assumption Agreement Form
THIS MORTGAGE ASSUMPTION AGREEMENT (hereinafter referred
to as the "Agreement") made and entered into as
of this _(1)_ day of ______(2)_____, 19_(3)_, by and between
_______(4)___________, of ____________(5)_______________,
(hereinafter referred to as the "Lender") and __________(6)_______________,
of __________(7)_______________ (hereinafter referred to as
"Borrower").
W I T N E S S E T H:
WHEREAS, Lender is the holder and owner of the following
documents (hereinafter sometimes collectively referred to
as the "Loan Documents"):
1. Mortgage Note dated ________(8)___________, in the original
principal face amount of _________(9)___________ DOLLARS ($_________)
executed and delivered by __________(10)__________ (hereinafter
referred to as the "Original Borrower") in favor
of Lender (hereinafter referred to as the "Note");
and,
2. Mortgage given by Original Borrower as "Mortgagor"
to Lender as "Mortgagee" dated _______(11)____________,
which Mortgage is recorded on the Public Records of ___(12)____
County, ___(13)____ at O.R. Book _(14)_, Page _(15)_ (hereinafter
referred to as the "Mortgage"), and which Mortgage
encumbers the real property as described therein; and,
WHEREAS, the Original Borrower is desirous of conveying the
property encumbered by the Mortgage, (hereinafter referred
to as the "Property") to Borrower; and,
WHEREAS, the Borrower desires to receive said Property and
formally assume the Mortgage and perform all of the covenants
and conditions contained in the Mortgage Note, the Mortgage
and all other Loan Documents as partial consideration for
its purchase of the Property and as consideration for the
Lender's willingness to consent to the sale of the Property
which is encumbered by the Loan Documents; and,
WHEREAS, the Mortgage expressly prohibits the conveyance
of the Property without the express written consent of the
Lender; and,
WHEREAS, the Lender is unwilling to give its consent to the
transfer of the Property to the Borrower unless the Borrower
shall assume all of the obligations heretofore imposed by
the Loan Documents upon the Original Borrower;
NOW, THEREFORE, for and in consideration of the sum of TEN
DOLLARS ($10.00) and in consideration of the Premises and
of the mutual covenants contained herein, and for other good
and valuable considerations, the receipt and sufficiency of
which are hereby acknowledged by the parties, the parties
hereto agree as follows:
1. Assumption. Borrower expressly assumes the Loan Documents
and agrees to perform all covenants, conditions, duties and
obligations contained therein and agrees to pay the Note and
the obligations evidenced thereby in a prompt and timely manner
in accordance with the terms thereof.
2. Consent to Conveyance. Lender hereby consents to the transfer
of the Property to the Borrower, but the Lender expressly
reserves the right to withhold its consent to any future sale
or transfer of the Property, as provided for in the Mortgage.
3. Warranties and Representations. Borrower affirms, warrants,
represents and covenants that Borrower has no defenses nor
rights of set-off against Lender or against the payment, collection
or enforcement of the indebtedness evidenced by the Note and
secured by the Mortgage and owed to Lender. Borrower further
warrants and represents as follows:
a. Borrower has done no acts nor omitted to do any act which
might prevent Lender from, or limit Lender in, acting upon
or under any of the provisions herein, in the Mortgage, in
the Note or any other Loan Documents;
b. Borrower is not prohibited under any other agreement with
any other person or any judgment or decree, from the execution
and delivery of this Agreement, the performance of each and
every covenant hereunder or under the Mortgage, Note or any
other Loan Documents;
c. No action has been brought or threatened which would in
any way interfere with the right of Borrower to execute this
Agreement and perform all of Borrower's obligations contained
herein, in the Note, in the Mortgage, or in any other Loan
Document;
d. All financial statements of Borrower and Guarantors, if
any, are true and correct in all respects, fairly present
the respective financial conditions of the subjects thereof,
as of the respective dates thereof and no material adverse
change has occurred that would affect Borrower's or Guarantors',
if any, ability to repay the indebtedness evidenced by the
Note and secured by the Mortgage;
e. Borrower is duly formed, validly existing and in good
standing under the laws of the State of ______(16)______ and
has full power and authority to consummate the transactions
contemplated under this Agreement.
4. Acknowledgements. Borrower acknowledges that:
a. The Loan Documents are in full force and effect; and,
b. The principal balance of the loan as represented by the
aforesaid Note as of the date of this Agreement is _____(17)______
DOLLARS ($___________) and principal and interest are unconditionally
due and owing to the Lender as provided in the Note.
5. Costs. Borrower shall pay all costs of the assumption
made hereby, to include without limitation, attorneys' fees
and recording costs, as well as the cost of an endorsement
to Lender's title insurance policy insuring the lien of the
Mortgage after the recording of this Agreement. Such costs
shall be due at closing hereunder and the payment thereof
shall be a condition precedent to Lender's consent to the
transfer of the Property to Borrower. In the event that it
is determined that additional costs relating to this transaction
are due, Borrower agrees to pay such costs immediately upon
demand.
6. Assumption Fee. In consideration of Lender's consenting
to the conveyance of the Property to the Borrower, Lender
is entitled to, and has earned, an assumption fee in the amount
of _(18)_ percent (___%) of the original principal face amount
of the indebtedness evidenced by the Note. Said fee shall
be due and payable upon the execution and delivery of this
Agreement. Borrower hereby agrees and acknowledges that said
fee is being charged solely for costs relating to the assumption
of the Mortgage and not as interest for the forbearance or
use of money.
7. Recordation. The recording of this Agreement on the Public
Records shall evidence the closing of the transaction described
herein.
8. Paragraph Headings. The paragraph headings used herein
are for convenience of reference only and shall not be used
in the interpretation or construction hereof.
9. Governing Law. This Agreement shall be governed, interpreted
and construed by, through and under the laws of the State
of _______(19)______.
10. Time of the Essence. Time is of the essence of this Agreement.
11. Attorneys' Fees. All costs incurred by Lender in enforcing
this Agreement and in collection of sums due Lender from Borrower,
to include, without limitation, reasonable attorneys' fees
through all trials, appeals, and proceedings, to include,
without limitation, any proceedings pursuant to the bankruptcy
laws of the United States and any arbitration proceedings,
shall be paid by Borrower.
12. Binding Effect. This Agreement shall inure to the benefit
of and be binding upon the parties hereto as well as their
successors and assigns, heirs and personal representatives.
IN WITNESS WHEREOF, the parties hereto have duly executed
this Agreement as follows:
As to Lender this _(20)_ day of ______(21)___________, 19_(22)_.
"LENDER"
WITNESSES: _________(23)______________ ____________(24)_______________
_________(23)______________
As to Borrower this (20) day of ________(21)_______, 19_(22)_.
"BORROWER"
WITNESSES:
_________(23)______________ ___________(25)________________
_________(23)______________
STATE OF _______(26)_________) ) COUNTY OF ______(27)_________)
THE FOREGOING instrument was acknowledged before me this
(28) day of _______(29)______, 19_(30)_, by ________(31)________.
___________(32)_______________ Notary Public
My Commission Expires: _________________
STATE OF ________(26)________) ) COUNTY OF _______(27)________)
THE FOREGOING instrument was acknowledged before me this
_(28)_ day of ______(29)______, 19(30), by ____(33)________.
__________(32)__________________ Notary Public
My Commission Expires: _________
NOTICE
The information in this document is designed to provide an
outline that you can follow when formulating business or personal
plans. Due to the variances by many local, city, county and
state laws, we recommend that you seek professional legal
counseling before entering into any contract or agreement.
If this document is of use
to you, please provide a link back to Hoover Web Design.
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