The Property Loan Agreement is a fundamental document used in Nigerian financial and real estate transactions where a lender provides financing secured against real property. This agreement is essential when financial institutions or authorized lenders extend credit for property acquisition, development, or refinancing purposes. The document must comply with Nigerian banking regulations, including Central Bank of Nigeria directives, the Land Use Act, and relevant state property laws. It typically includes comprehensive terms covering loan disbursement, security creation, repayment obligations, property maintenance requirements, and default remedies. The agreement is particularly important in Nigeria's complex property market, where land tenure systems and state-specific regulations must be carefully considered.

1. Parties: Identifies and defines the Lender and Borrower with full legal names and addresses

2. Background: Contextual information about the purpose of the loan and the property being financed

3. Definitions: Defines key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the principal amount, currency, and permitted use of the loan funds

5. Interest Rate and Calculations: Details the applicable interest rate, calculation method, and payment periods

6. Repayment Terms: Outlines the repayment schedule, installment amounts, and payment methods

7. Security: Details of the property serving as security and creation of the legal charge/mortgage

8. Conditions Precedent: Conditions that must be satisfied before the loan is advanced

9. Borrower's Representations and Warranties: Statements of fact and assurances given by the borrower

10. Borrower's Covenants: Ongoing obligations and restrictions on the borrower

11. Events of Default: Circumstances that constitute default and trigger remedies

12. Lender's Rights and Remedies: Actions the lender can take in case of default

13. Costs and Expenses: Allocation of legal fees, registration costs, and other expenses

14. Notices: Process for formal communications between parties

15. Governing Law and Jurisdiction: Confirms Nigerian law governs and specifies jurisdiction for disputes