Agreement For Sale Of Mortgaged Property for United Arab Emirates

Agreement For Sale Of Mortgaged Property Template for United Arab Emirates

A comprehensive legal agreement governed by UAE law that facilitates the sale of a mortgaged property while addressing the rights and obligations of the seller, buyer, and existing mortgagee. The document complies with UAE Federal Laws, including the Civil Code and Mortgage Law, and incorporates relevant Islamic finance principles where applicable. It details the terms of sale, mortgage discharge procedures, payment mechanisms, and property transfer requirements while ensuring compliance with local property registration regulations and banking requirements.

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What is a Agreement For Sale Of Mortgaged Property?

The Agreement For Sale Of Mortgaged Property is a specialized legal document used in the United Arab Emirates when transferring ownership of property that is subject to an existing mortgage. This document is essential when the seller has an outstanding mortgage on the property and wishes to sell it to a buyer, requiring careful coordination between the property transfer and mortgage discharge. The agreement must comply with UAE Federal Laws, including property laws, mortgage regulations, and Islamic finance principles where applicable. It typically includes detailed provisions for purchase price allocation, mortgage discharge procedures, property transfer mechanisms, and necessary approvals from the existing mortgagee. The document is particularly important in Dubai and other UAE emirates where property transactions are strictly regulated and require specific documentation for registration with local land departments.

What sections should be included in a Agreement For Sale Of Mortgaged Property?

1. Parties: Identification of the Seller, Buyer, and Current Mortgagee with full legal names and details

2. Background: Context of the sale, including existing mortgage details and intention to sell the mortgaged property

3. Definitions: Key terms used throughout the agreement including Property, Completion Date, Purchase Price, Existing Mortgage, etc.

4. Sale and Purchase: Core terms of the sale including the property description, purchase price, and payment terms

5. Mortgage Details: Details of the existing mortgage, outstanding amount, and arrangements for discharge

6. Completion Requirements: Conditions precedent, completion process, and requirements for transfer of title

7. Property Handover: Terms and process for physical handover of the property

8. Seller's Warranties: Warranties regarding property title, condition, and existing encumbrances

9. Buyer's Warranties: Warranties regarding financial capacity and compliance with laws

10. Mortgagee's Consent: Terms of the mortgagee's approval and requirements for mortgage discharge

11. Registration and Transfer: Process and requirements for property registration with relevant authorities

12. Costs and Taxes: Allocation of transaction costs, registration fees, and applicable taxes

13. Default and Remedies: Consequences of default and available remedies for each party

14. 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 Sale Of Mortgaged Property?

1. New Mortgage Arrangements: Required if buyer is obtaining new mortgage financing

2. Tenant Rights: Required if property is currently leased to tenants

3. Property Management: Required if property is part of managed community with specific obligations

4. Condition Precedent: Required if sale is subject to specific conditions like regulatory approvals

5. Broker Provisions: Required if real estate brokers are involved in the transaction

6. Islamic Finance Compliance: Required if transaction must comply with Islamic finance principles

7. Escrow Arrangements: Required if payments are handled through escrow

8. Property Inspection: Required if specific inspection requirements or condition issues exist

What schedules should be included in a Agreement For Sale Of Mortgaged Property?

1. Schedule 1 - Property Details: Detailed description of property including title deed number, location, size, and specifications

2. Schedule 2 - Purchase Price and Payment Terms: Breakdown of purchase price, payment schedule, and method of payment

3. Schedule 3 - Existing Mortgage Details: Complete details of existing mortgage including account numbers, outstanding amount, and lender details

4. Schedule 4 - Completion Requirements: Checklist of documents and requirements for completion

5. Schedule 5 - Property Condition Report: Current condition of property and any agreed repairs or modifications

6. Appendix A - Required Documents: List of all required documents from each party

7. Appendix B - Form of Transfer: Template for property transfer documentation

8. Appendix C - Mortgagee's Consent Letter: Format of consent letter from existing mortgagee

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

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Banking & Finance

Islamic Banking

Property Development

Mortgage Services

Legal Services

Property Management

Financial Services

Construction & Development

Relevant Teams

Legal

Real Estate

Compliance

Risk Management

Property Management

Mortgage Operations

Islamic Banking

Contract Administration

Corporate Affairs

Property Development

Relevant Roles

Real Estate Lawyer

Property Manager

Mortgage Officer

Bank Manager

Real Estate Agent

Compliance Officer

Legal Counsel

Property Developer

Transaction Manager

Real Estate Investment Manager

Islamic Banking Specialist

Property Registration Officer

Contract Administrator

Risk Manager

Chief Legal Officer

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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