The Mortgage Sales Contract is a crucial legal document used in Hong Kong real estate financing transactions to formalize the lending arrangement between a financial institution and a borrower, with the loan being secured against real property. This document is essential when purchasers require financing to acquire property or when property owners seek to refinance existing mortgages. The contract must comply with Hong Kong's stringent regulatory framework, including the Banking Ordinance and Conveyancing and Property Ordinance. It contains detailed provisions covering loan terms, security arrangements, borrower obligations, lender rights, default provisions, and insurance requirements. The document serves as the primary agreement protecting both the lender's security interest and the borrower's rights throughout the mortgage term.

1. Parties: Identifies the mortgagor (borrower), mortgagee (lender), and any guarantors

2. Background: Sets out the context of the mortgage sale, including property purchase details and loan purpose

3. Definitions: Defines key terms used throughout the agreement

4. Property Details: Comprehensive description of the mortgaged property including address and lot number

5. Loan Amount and Terms: Specifies the principal amount, interest rate, repayment period, and payment schedule

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

7. Borrower's Covenants: Borrower's obligations including property maintenance, insurance, and payment commitments

8. Lender's Rights: Rights of the lender including enforcement and sale rights upon default

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

10. Insurance Requirements: Mandatory insurance coverage for the property

11. Representations and Warranties: Statements of fact and promises by the borrower

12. Costs and Expenses: Allocation of legal fees, stamp duty, and other transaction costs

13. Notices: Process for serving formal notices between parties

14. Governing Law and Jurisdiction: Confirms Hong Kong law governs the agreement

15. Execution: Signature blocks and execution formalities