Agreement For Loan Against Property for United Arab Emirates

Agreement For Loan Against Property Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that establishes the terms and conditions under which a lender provides financing to a borrower using real property as collateral. The document incorporates provisions compliant with UAE Federal Laws, including Civil and Commercial Codes, as well as relevant emirate-specific property laws. It details the loan amount, repayment terms, security creation, borrower's obligations, and enforcement mechanisms, while ensuring compliance with UAE Central Bank regulations and, where applicable, Sharia principles. The agreement includes specific provisions for property valuation, insurance requirements, and mortgage registration in accordance with UAE property laws.

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What is a Agreement For Loan Against Property?

The Agreement For Loan Against Property is a crucial document used in the United Arab Emirates when securing financing using real estate as collateral. This agreement is essential for both commercial and residential property financing, providing a legally robust framework that protects both lender and borrower interests. The document must comply with UAE Federal Laws, including Civil Code (Federal Law No. 5 of 1985), Commercial Code, and specific emirate-level property regulations. It includes comprehensive details about the loan facility, property security, payment terms, and enforcement rights, while often incorporating Sharia-compliant structures to align with Islamic banking principles prevalent in the UAE. The agreement is particularly relevant in today's UAE market, where property-backed financing remains a significant component of both personal and business lending, requiring careful consideration of current Central Bank regulations and property market conditions.

What sections should be included in a Agreement For Loan Against Property?

1. Parties: Identification of the Lender and Borrower with full legal names and addresses

2. Background: Context of the loan agreement, including brief description of the property and purpose of the loan

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the loan amount, purpose, and disbursement terms

5. Property Details: Detailed description of the property being used as security

6. Security Creation: Terms creating the security interest over the property

7. Repayment Terms: Schedule of repayments, payment methods, and prepayment provisions

8. Interest Rate and Profit: Specification of profit rate (for Islamic finance) or interest rate and calculation method

9. Borrower's Representations and Warranties: Statements of fact and assurances given by the borrower

10. Borrower's Covenants: Ongoing obligations of the borrower during the loan term

11. Events of Default: Circumstances constituting default and consequences

12. Lender's Rights and Remedies: Actions the lender can take in case of default

13. Property Insurance: Requirements for insurance coverage of the property

14. Fees and Expenses: Details of all fees, charges, and expenses payable

15. Notices: Communication methods and contact details for formal notices

16. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

What sections are optional to include in a Agreement For Loan Against Property?

1. Guarantor Provisions: Required when there is a third-party guarantor for the loan

2. Islamic Finance Provisions: Required for Sharia-compliant financing structures

3. Property Management: Required when specific property management obligations are imposed on the borrower

4. Assignment and Transfer: Include when the lender wants the right to assign or transfer the loan

5. Additional Security: Required when additional collateral or security is provided beyond the property

6. Cross-Default: Include when the loan is part of multiple facility arrangements

7. Force Majeure: Optional provisions for unforeseen circumstances affecting loan performance

8. Variation and Amendments: Include when specific procedures for amendments are required

What schedules should be included in a Agreement For Loan Against Property?

1. Property Details Schedule: Detailed legal description of the property, including title details and encumbrances

2. Repayment Schedule: Detailed amortization schedule showing payment dates and amounts

3. Fee Schedule: Comprehensive list of all applicable fees and charges

4. Insurance Requirements: Detailed specifications for required insurance coverage

5. Form of Notice: Standard templates for various notices under the agreement

6. Property Valuation Report: Summary of the professional valuation of the property

7. Required Documents: List of all documents required for loan processing and security creation

8. Conditions Precedent Checklist: List of conditions to be satisfied before loan disbursement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking & Financial Services

Real Estate

Islamic Finance

Insurance

Legal Services

Property Development

Construction

Commercial Real Estate

Residential Real Estate

Small and Medium Enterprises

Relevant Teams

Legal

Credit Risk

Compliance

Real Estate Finance

Islamic Banking

Property Services

Loan Operations

Documentation

Risk Management

Corporate Banking

Retail Banking

Relevant Roles

Legal Counsel

Mortgage Officer

Credit Manager

Property Valuation Specialist

Compliance Officer

Risk Manager

Real Estate Manager

Islamic Banking Specialist

Loan Officer

Chief Legal Officer

Property Lawyer

Banking Relationship Manager

Credit Risk Officer

Documentation Specialist

Real Estate Finance Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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