UNDERSTANDING A DEED OF MORTGAGE IN CAMEROON- 2023 APPROVED GUIDELINES

A deed of mortgage in Cameroon could take several forms including:

1. Where the mortgagor borrows money for any other purpose and uses his property as security for the loan
2. 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:

1. It must state the source of the loan
2. It must state the amount of the loan
3. It must state the terms and manner of repayment of the loan
4. It must state the interest payable on the loan.

STAGES IN A DEED OF MORTGAGE IN CAMEROON

1. Negotiation of the loan (payment of money instalmentally or lump sum)
2. Preliminary investigation of the Mortgagor’s/Owner’s title
3. Search Report by the mortgagee’s solicitor
4. Valuation of proposed mortgage property (Estate expert, estate valuer, quantity Surveyor)
5. Contract (preparation of the loan agreement)
6. 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)
7. Execution of the deed by the parties
8. Perfection of the title

THE ROLE OF THE SOLICITOR/LAWYER IN A DEED OF MORTGAGE IN CAMEROON

1. Negotiation of the loan agreement
2. Investigation of title
3. Preparation of search report
4. Drafting the mortgage deed and other necessary documents
5. Perfecting the mortgage
6. Discharge of the mortgage
7. Negotiation, investigation, preparation, drafting, perfecting, and discharge.

PARTICULARS OF INSTRUCTION NEEDED TO DRAFT A DEED OF MORTGAGE IN CAMEROON

1. Particulars of the parties, that is, mortgagor and mortgagee
2. Particulars of the amount advanced as loan by the mortgagee to the mortgagor
3. Particulars of the property to be used as security for the loan
4. Particulars of the legal due date and the mode and manner of repayment of the loan
5. Particulars of the interest payable.
6. Particulars of the covenants to be reserved in the mortgage
7. Particulars of the witnesses to the mortgage
8. The remedies available to either party upon default by the other party

CONCLUSION

Once a mortgage always a mortgage and nothing but a mortgage.

Article by MAFANY victor NGANDO

Kinsmen Advocates Law Firm

“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”