A deed of mortgage in Cameroon could take several forms including:
- Where the mortgagor borrows money for any other purpose and uses his property as security for the loan
- Where the mortgagor borrows money to build or buy a house which will also be used to secure the loan.
THE CONTENTS OF A VALID DEED OF MORTGAGE IN CAMEROON ARE AS FOLLOWS:
- It must state the source of the loan
- It must state the amount of the loan
- It must state the terms and manner of repayment of the loan
- It must state the interest payable on the loan.
STAGES IN A DEED OF MORTGAGE IN CAMEROON
- Negotiation of the loan (payment of money instalmentally or lump sum)
- Preliminary investigation of the Mortgagor’s/Owner’s title
- Search Report by the mortgagee’s solicitor
- Valuation of proposed mortgage property (Estate expert, estate valuer, quantity Surveyor)
- Contract (preparation of the loan agreement)
- Documentation, that is the preparation of the deed of a legal mortgage by the Mortgagee’s solicitor (the final document will depend on the location of the property and the mode of creation)
- Execution of the deed by the parties
- Perfection of the title
THE ROLE OF THE SOLICITOR/LAWYER IN A DEED OF MORTGAGE IN CAMEROON
- Negotiation of the loan agreement
- Investigation of title
- Preparation of search report
- Drafting the mortgage deed and other necessary documents
- Perfecting the mortgage
- Discharge of the mortgage
- Negotiation, investigation, preparation, drafting, perfecting, and discharge.
PARTICULARS OF INSTRUCTION NEEDED TO DRAFT A DEED OF MORTGAGE IN CAMEROON
- Particulars of the parties, that is, mortgagor and mortgagee
- Particulars of the amount advanced as loan by the mortgagee to the mortgagor
- Particulars of the property to be used as security for the loan
- Particulars of the legal due date and the mode and manner of repayment of the loan
- Particulars of the interest payable.
- Particulars of the covenants to be reserved in the mortgage
- Particulars of the witnesses to the mortgage
- The remedies available to either party upon default by the other party
Once a mortgage always a mortgage and nothing but a mortgage.
Article by MAFANY victor NGANDO
“The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances”