Mortgage Agreement for United Arab Emirates

Mortgage Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE federal laws and local emirate regulations that establishes a security interest over real property in favor of a lender. The agreement details the terms and conditions under which a property is offered as security for a loan, including specific requirements under UAE mortgage regulations, Central Bank guidelines, and where applicable, Sharia compliance principles. It incorporates both federal requirements under UAE Civil Code and specific emirate-level property regulations, particularly relevant to Dubai and Abu Dhabi real estate markets.

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What is a Mortgage Agreement?

The Mortgage Agreement is a crucial legal instrument in UAE real estate financing, used to secure a lender's interest in property against a loan facility. It must comply with UAE Federal Law No. 5 of 1985 (Civil Code), relevant emirate-specific property laws, and UAE Central Bank regulations regarding mortgage lending. The document is essential for both conventional and Islamic financing structures, detailing the creation of security, payment terms, enforcement rights, and obligations of all parties. The agreement must be registered with relevant land departments and conform to local property regulations. It typically includes comprehensive provisions for property maintenance, insurance requirements, default scenarios, and enforcement mechanisms, all structured within the UAE's legal framework.

What sections should be included in a Mortgage Agreement?

1. Parties: Identification of the Mortgagor (borrower), Mortgagee (lender), and any guarantors with full legal names and details

2. Background: Context of the mortgage agreement, including property purchase details and purpose of the mortgage

3. Definitions: Comprehensive definitions of terms used throughout the agreement, including technical and financial terms

4. Property Details: Detailed description of the mortgaged property, including title details and registration information

5. Loan Amount and Terms: Specification of the principal amount, interest rate/profit rate, term of the mortgage, and payment schedule

6. Security Creation: Legal provisions creating the mortgage security over the property

7. Borrower's Representations and Warranties: Statements and guarantees made by the borrower regarding their capacity and the property's status

8. Borrower's Covenants: Ongoing obligations of the borrower including property maintenance, insurance, and payment obligations

9. Events of Default: Circumstances constituting default and consequences thereof

10. Enforcement Rights: Lender's rights and remedies in case of default, including power of sale

11. Insurance Requirements: Mandatory insurance coverage for the property and assignment of policies

12. Registration and Fees: Requirements for mortgage registration and allocation of associated costs

13. Notices: Process for serving notices between parties

14. Governing Law and Jurisdiction: Specification of UAE law application and courts' jurisdiction

What sections are optional to include in a Mortgage Agreement?

1. Islamic Finance Provisions: Required for Sharia-compliant mortgages, including specific Islamic financing structure (Ijara, Murabaha, etc.)

2. Corporate Borrower Provisions: Additional provisions required when the borrower is a corporate entity, including corporate authorities and representations

3. Guarantor Provisions: Terms applicable when a third-party guarantor is involved in the mortgage

4. Property Management: Required for mortgages of commercial properties or when specific management obligations exist

5. Development Obligations: Needed when the mortgaged property is under construction or development

6. Foreign Ownership Provisions: Required when the borrower is a foreign national, addressing specific foreign ownership restrictions

7. Multiple Properties: Additional provisions when the mortgage covers multiple properties

8. Assignment and Transfer: Provisions allowing for the transfer or assignment of the mortgage to another lender

What schedules should be included in a Mortgage Agreement?

1. Property Schedule: Detailed legal description of the property, including title details, plot numbers, and location plans

2. Payment Schedule: Detailed breakdown of payment installments, including amounts and due dates

3. Insurance Schedule: Specific insurance requirements and minimum coverage amounts

4. Fees Schedule: Breakdown of all applicable fees, charges, and costs

5. Form of Transfer Deed: Template for property transfer in case of enforcement

6. Property Valuation Report: Independent valuation of the mortgaged property

7. Required Documents: List of documents required for mortgage registration and completion

8. Special Conditions: Any specific conditions or requirements unique to the particular mortgage

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

Insurance

Legal Services

Property Development

Construction

Islamic Banking

Property Management

Investment & Asset Management

Mortgage Broking

Relevant Teams

Legal

Real Estate Finance

Credit Risk

Compliance

Islamic Banking

Property Services

Mortgage Operations

Documentation

Risk Management

Real Estate Advisory

Relevant Roles

Legal Counsel

Mortgage Officer

Real Estate Manager

Credit Risk Manager

Compliance Officer

Property Lawyer

Banking Relationship Manager

Islamic Banking Specialist

Real Estate Finance Manager

Mortgage Underwriter

Property Valuation Specialist

Documentation Manager

Risk Assessment Officer

Real Estate Transaction 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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