Mortgage Loan Contract Template for Austria

The Mortgage Loan Contract is a fundamental document in Austrian banking and real estate transactions, used when a borrower seeks financing secured against real property. It serves as the primary agreement between a credit institution and a borrower, establishing both the loan terms and the security interest in the property. The document must comply with Austrian banking regulations, consumer protection laws, and EU directives, particularly the Hypothekar- und Immobilienkreditgesetz (HIKrG) for mortgage credits. This contract type is essential for both residential and commercial property financing, requiring careful consideration of property valuation, registration requirements, and consumer protection provisions. The agreement typically includes comprehensive terms about loan disbursement, repayment, property maintenance obligations, and default remedies, all structured within the Austrian legal framework.

1. Parties: Identification of the lender (credit institution) and borrower(s), including full legal names, addresses, and registration details

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

3. Definitions: Definitions of key terms used throughout the agreement, including technical banking and property-related terminology

4. Loan Details: Principal amount, currency, purpose, and term of the loan

5. Interest and Fees: Interest rate (fixed or variable), calculation method, payment dates, and all applicable fees and charges

6. Drawdown Conditions: Prerequisites and conditions for disbursement of the loan amount

7. Repayment Terms: Payment schedule, methods of payment, and early repayment provisions

8. Security Arrangements: Details of the mortgage, including property description and ranking of the security

9. Property Requirements: Obligations regarding property maintenance, insurance, and usage restrictions

10. Representations and Warranties: Statements and guarantees by the borrower regarding their status and the property

11. Borrower Covenants: Ongoing obligations of the borrower during the loan term

12. Events of Default: Circumstances constituting default and their consequences

13. Bank's Rights and Remedies: Actions the bank may take in case of default or breach

14. Costs and Expenses: Allocation of costs including registration fees, taxes, and enforcement expenses

15. Notices: Communication requirements and contact details

16. Governing Law and Jurisdiction: Confirmation of Austrian law governance and jurisdiction for disputes