A mortgage deed is a legal document used in real estate transactions to secure a loan for the purchase of property. In this agreement, the property owner (mortgagor) pledges the property as collateral to a lender (mortgagee) in exchange for funds. The mortgage deed outlines the terms of the loan, including the principal amount borrowed, the interest rate, repayment schedule, and any conditions or provisions agreed upon by both parties. Once signed, the mortgage deed is recorded with the appropriate government authority to establish the lender’s lien on the property. If the borrower defaults on the loan, the lender has the right to foreclose on the property to recover the outstanding debt.