Mortgage Deed is legal document which entered by a lender and borrower for transferring the property and the ownership rights to the lender as security for the loan. Such type of deed gives the lender an assurance in case the borrower defaults in repayment. For example, a mortgage loan to purchase a commercial property, a mortgage deed is signed giving the lender a hold on property.
A mortgage deed transfers the legal title of the property to the lender. The lender has no right to do anything with title of the property except to cease the property in the event of non-payment.