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