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Settlement Dispute Over Mortgages and Guarantees of Testator

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Settlement Dispute Over Mortgages and Guarantees of Testator Powered By Docstoc
					This is an agreement between a mortgagee, a guarantor, and an estate for the
settlement of dispute that has arisen between the parties. Under this settlement
agreement, the mortgagee is indebted to the estate and agrees that it will transfer the
real property described in “Schedule B” for the purposes of reaching a settlement. In
addition, the mortgagee agrees that it will sell certain real property to a third party
purchaser and will provide the proceeds of the sale to the estate. This agreement
should be used by individuals or entities that are involved in a property dispute with an
estate holder or mortgagee.
         SETTLEMENT DISPUTE OVER MORTGAGES AND
                GUARANTEES OF TESTATOR
      THIS AGREEMENT (the “Agreement”), is made this ____ day of ___________,
201____, by and between _____________________ (the “Mortgagee”), ______________ (the
“Guarantor”) and the Estate of ____________________ [PROVIDE NAME OF DECEASED
PERSON] (the “Estate”).

        WHEREAS the Estate is the holder of certain Mortgages over certain real property which
real property is more particularly described on Schedule “A” annexed hereto (the “Mortgages”);

       AND WHEREAS the Guarantor has guaranteed the certain Mortgages over the real
property held by the Estate and registered against the Mortgagee;

       AND WHEREAS a dispute has arisen among the parties hereto in respect to the terms,
conditions and provisions of the certain Mortgages;

        AND WHEREAS the parties hereto desire to enter into this Agreement to provide for the
terms, conditions and provisions of settling the dispute.

         IN CONSIDERATION of the promises and other good and valuable consideration set
forth, the parties agree as follows:

1.     The Mortgagee is indebted to the Estate in the principal amount of ______________
       Dollars ($__________) including all accrued interest thereon (the “Principal Sum”) in
       respect of the certain Mortgages registered on the ____ day of _________, 201____ in
       the name of the Estate and registered against the Mortgagee and registered as instrument
       numbers ___________________________ [PROVIDE NUMBERS] in the Land
       Registry Office of the County of __________________.

2.     The Mortgagee agrees that it/he/she shall transfer and convey the real properties
       described on Schedule “B” annexed hereto to the Estate for the purpose of coming to a
       Settlement Agreement, where the Estate agrees that it shall not commence any legal
       proceedings for an action of foreclosure.

3.    To settle the dispute which has arisen among the parties hereto, the Estate currently holds
      a mortgage over the real property municipally known as ______________ [PROVIDE
      ADDRESS/LOCATION] and owned by the Mortgagee. The Mortgagee agree that
      it/he/she shall sell this real property to a third party purchaser for consideration not less
      than _____________ ($_____) Dollars. Upon the closing of the sale of this real property,
      the Mortgage shall provide the full consideration to the Estate and the Estate shall deem
      the mortgage currently registered against this property as paid in full and shall register a
      full discharge of the said mortgage from the title to this property. Prior to the closing
      date of the sale contemplated herein, the Mortgagee and the Guarantor shall pay to the
      Estate the monthly sum of __________ ($______) Dollars, which shall be paid by the
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      Mortgagee and the Guarantor to the Estate until the closing date of the transaction. Such
      monthly sum shall be paid by the Mortgagee and the Guarantor to the Estate on the ____
      day of each and every month. Any and all taxes or levies that may be due and payable
      shall be continued to be paid by the Mortgagee and the Guarantor until the closing date of
      the sale contemplated herein.

      In the event the property does not sell to a third party within __________ (___)
      month(s)/year(s) {Instruction: specify which. Cross out or delete the period of time that
      does NOT apply.} from the date of this Agreement, the Guarantor shall purchase the
      property from the Mortgage and shall provide the consideration to the Estate.

4.    The Mortgagee shall execute and deliver to the Estate a promissory note in the form
      annexed hereto as Schedule “C” and such promissory note shall be guaranteed by the
      Guarantor. The promissory note shall bear interest at the rate of _____ percent (___%)
      per annum and have a term of _________ (__) year(s). As security for the payment of
      the amount due and owing under the promissory note, the Estate shall register a financing
      statement against the Mortgagee and the Guarantor with a term of no less than ________
      (__) year(s), which shall be registered against all of the assets of the Mortgagee and the
      Guarantor this is currently owned or that will be acquired in the future.

5.    The parties hereto agree that they shall execute and deliver any and all other documents
      or instruments that may be required or desirable to give effect to the transactions
      contemplated herein.

6.    In the event the Mortgagee or the Guarantor defaults on any of the terms, conditions or
      provisions contained herein which are not remedied within _________ (___) days of such
      default, the Estate shall have the full right and authority to commence legal proceedings
      for foreclosure on the real properties.

7.    This Agreement shall terminate upon all of terms, conditions and provisions contained
      herein being fully satisfied by the Mortgagee and the Guarantor. Upon the satisfaction of
      all of the terms, conditions and provisions contained herein, the Estate shall execute and
      deliver to the Mortgagee and the Guarantor a full and final release in the form annexed
      hereto as Schedule “D”.

8.    This Agreement shall be binding upon the party’s heirs, executors, successors and
      assigns.

9.    No term, condition or provision of this Agreement shall be amended without the written
      consent of the other parties hereto.

10.   A copy of this executed Agreement shall be filed with the Court of ______________
      [PROVIDE DETAILS] in the County of ________________. This Agreement shall be
      in full force and effect upon the approval of the said Court and upon execution by the
      parties hereto.

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11.    This Agreement shall be governed by the laws of the State of ___________ applicable
       therein and as amended from time-to-time.

12.    Severability. Each provision of this Agreement is intended to be severable. If any provision
       hereof is illegal or invalid, both parties agree that it shall be severed, and such illegality or
       invalidity shall not affect the validity of the remainder of this Agreement.

       IN WITNESS WHEREOF the parties hereto have duly executed this Agreement as of the
day and year first written above.




Witness:                                                       Mortgagee


Witness:                                                       Guarantor

                                                               (ESTATE OF ________________)
                                                               Per:



                                                               Executor




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                                SCHEDULE “A”




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                                SCHEDULE “B”

List of Real Properties




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                                SCHEDULE “C”




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                                SCHEDULE “D”

Full and Final Release




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DOCUMENT INFO
Description: This is an agreement between a mortgagee, a guarantor, and an estate for the settlement of dispute that has arisen between the parties. Under this settlement agreement, the mortgagee is indebted to the estate and agrees that it will transfer the real property described in “Schedule B” for the purposes of reaching a settlement. In addition, the mortgagee agrees that it will sell certain real property to a third party purchaser and will provide the proceeds of the sale to the estate. This agreement should be used by individuals or entities that are involved in a property dispute with an estate holder or mortgagee.