Mortgage Clauses
(Commercial) (NJ)

Summary

These clauses may be inserted in a mortgage template where the real property securing the loan is located in the State of New Jersey. These clauses include practical guidance and drafting notes. In the State of New Jersey, the security instrument securing a promissory note to be executed in connection with an acquisition loan transaction is a mortgage. See New Jersey Transaction Guide § 103.20. Under a mortgage the borrower, sometimes referred to as the grantor, gives the lender, sometimes referred to as the beneficiary, a lien on the real property as security for the loan until the promissory note is repaid. If the borrower defaults under a mortgage the lender may foreclose upon the property. The mortgage should be prepared in accordance with the document requirements of the New Jersey Department of State's Division of Archives and Records Management. The mortgage must be legibly printed on paper no larger than 8.5 x 14 inches. If a document does not include a cover sheet or electronic synopsis, the recording office will charge a fee of $20. See N.J. Stat. § 46:26A-5. Mortgages are recorded in New Jersey pursuant to N.J. Stat. § 46:26A-1 et seq. A mortgage should be recorded in the office of the county clerk in the county (or counties) where the property is located. The county recording officer has a duty to record the mortgage presented provided it is in the proper format and is accompanied by the requisite fee and any state tax, if applicable. See N.J. Stat. § 46:26A-6. Defined terms used throughout these mortgage clauses should be conformed to the applicable mortgage and related loan documents these clauses are being inserted in. These clauses may be used to supplement a short form of mortgage. For a short form of New Jersey mortgage, see Mortgage (Acquisition Loan, Short Form) (NJ). For further information on commercial real estate financing transactions in New Jersey, see Commercial Real Estate Acquisition Loan Resource Kit (NJ), Commercial Real Estate Financing (NJ), and Commercial Real Estate Financing Transactions (NJ).