Mortgage Agreement Form Template for Indonesia

The Mortgage Agreement Form is a crucial legal document used in Indonesian property financing transactions to create a security interest in real property. This document is essential when a borrower seeks financing using real estate as collateral, whether for personal, commercial, or development purposes. The agreement must comply with Indonesian Law No. 4 of 1996 on Mortgages of Land and Land-Related Objects, as well as relevant banking and property regulations. It establishes the rights and obligations of both lender and borrower, details the secured property, specifies loan terms, and provides enforcement mechanisms. The document requires execution before a Land Deed Official (PPAT) and subsequent registration with the National Land Agency (BPN) to create a valid and enforceable mortgage right (Hak Tanggungan). This standardized form ensures consistency in mortgage transactions while protecting the interests of all parties involved.

1. Parties: Identification of the lender (mortgagee) and borrower (mortgagor), including complete legal names, addresses, and registration details if applicable

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

3. Definitions: Definitions of key terms used throughout the agreement, including technical and legal terms

4. Property Details: Comprehensive description of the mortgaged property, including certificate numbers, boundaries, and registered rights

5. Loan Amount and Terms: Specification of the loan amount, interest rate, term of the loan, and payment schedule

6. Security Rights: Details of the mortgage rights (Hak Tanggungan) being granted over the property

7. Representations and Warranties: Statements and guarantees by the borrower regarding property ownership, condition, and authority to enter agreement

8. Borrower's Obligations: Ongoing obligations including property maintenance, insurance, taxes, and other responsibilities

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

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

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

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

13. Notices: Process for sending and receiving formal communications between parties

14. Governing Law: Confirmation of Indonesian law governance and jurisdiction

15. Execution: Signature blocks and execution requirements including notarization details