Document background
The Letter of Intent for Mortgage is a crucial preliminary document in Indian property financing transactions, serving as a precursor to the final mortgage deed. This document is typically used when parties have reached an initial understanding regarding a mortgage arrangement but need to formalize their intentions before proceeding with the full documentation. It outlines the essential terms and conditions of the proposed mortgage, including property details, loan amount, interest rates, and repayment terms. While primarily governed by the Transfer of Property Act, 1882, and the Indian Contract Act, 1872, the document also needs to comply with various other Indian banking and property laws. The Letter of Intent for Mortgage helps parties establish clear expectations and provides a framework for further negotiations and due diligence, though it generally remains non-binding except for specific provisions like confidentiality or exclusivity.
