Mortgage Purchase Agreement for Philippines

Mortgage Purchase Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that facilitates the transfer of mortgage rights and obligations from one party (typically a financial institution) to another. The document outlines the terms and conditions of the mortgage purchase, including purchase price, payment terms, representations and warranties, and compliance requirements under Philippine banking and property laws. It incorporates specific provisions required by Philippine regulations, including those mandated by the General Banking Law and Property Registration Decree, while ensuring proper documentation for regulatory oversight and registration purposes.

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What is a Mortgage Purchase Agreement?

The Mortgage Purchase Agreement is a critical document used in the Philippine financial sector when transferring existing mortgage rights and obligations between parties. This agreement is particularly relevant in scenarios involving portfolio sales, bank restructuring, or strategic asset management decisions. The document must comply with Philippine banking regulations, particularly the General Banking Law (Republic Act No. 8791) and relevant Central Bank of the Philippines (Bangko Sentral ng Pilipinas) directives. It includes detailed provisions covering the transfer mechanics, regulatory compliance requirements, representations and warranties, and specific Philippine law considerations. The agreement is essential for financial institutions engaging in mortgage trading activities and requires careful attention to local property registration requirements and consumer protection regulations.

What sections should be included in a Mortgage Purchase Agreement?

1. Parties: Identifies and provides full details of all parties to the agreement, including the seller and purchaser of the mortgage

2. Background: Sets out the context of the transaction, including brief description of the existing mortgage and the intention to transfer it

3. Definitions: Defines all key terms used throughout the agreement

4. Sale and Purchase: Details the core transaction terms, including the mortgage being sold and purchase price

5. Purchase Price and Payment: Specifies the purchase price, payment terms, and method of payment

6. Conditions Precedent: Lists all conditions that must be satisfied before the agreement becomes effective

7. Completion: Details the completion process, including timing, location, and actions required by each party

8. Seller's Representations and Warranties: Sets out the seller's representations regarding the mortgage, underlying property, and their authority to sell

9. Purchaser's Representations and Warranties: Contains purchaser's representations regarding their authority and capacity to purchase

10. Covenants: Details ongoing obligations of both parties before and after completion

11. Default and Remedies: Specifies events of default and available remedies to the non-defaulting party

12. Notices: Specifies how formal notices under the agreement should be given

13. Governing Law and Jurisdiction: Confirms Philippine law as governing law and specifies jurisdiction for disputes

14. General Provisions: Contains standard boilerplate provisions including amendments, waivers, and severability

What sections are optional to include in a Mortgage Purchase Agreement?

1. Transfer of Related Security: Used when additional security instruments need to be transferred along with the mortgage

2. Third Party Consents: Required when the transfer needs approval from third parties such as regulatory authorities

3. Tax Provisions: Detailed tax arrangements when complex tax implications are involved

4. Anti-Money Laundering Provisions: Enhanced AML provisions for high-value transactions or when required by specific circumstances

5. Servicing Arrangements: Used when specific arrangements for ongoing servicing of the mortgage are needed

6. Insurance: Specific insurance requirements beyond standard provisions

7. Foreign Exchange Provisions: Required when the transaction involves foreign currency elements

What schedules should be included in a Mortgage Purchase Agreement?

1. Schedule 1 - Details of the Mortgage: Complete details of the mortgage being purchased, including property description, outstanding amount, and payment terms

2. Schedule 2 - Property Information: Detailed information about the underlying property, including title details and registration information

3. Schedule 3 - Form of Transfer Documents: Templates of all documents required to effect the transfer

4. Schedule 4 - Completion Requirements: Detailed list of all documents and actions required for completion

5. Schedule 5 - Seller's Deliverables: List of all documents and items to be delivered by the seller

6. Appendix A - Power of Attorney: Form of power of attorney if required for the transaction

7. Appendix B - Regulatory Approvals: Copies of required regulatory approvals and related correspondence

8. Appendix C - Payment Details: Detailed payment instructions and bank account information

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

Jurisdiction

Philippines

Publisher

Genie AI

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Banking

Real Estate

Financial Services

Investment Management

Mortgage Lending

Property Development

Legal Services

Financial Technology

Relevant Teams

Legal

Finance

Risk Management

Compliance

Real Estate

Credit Operations

Portfolio Management

Investment

Asset Management

Due Diligence

Banking Operations

Property Finance

Relevant Roles

Chief Financial Officer

Legal Counsel

Mortgage Operations Manager

Risk Management Officer

Compliance Officer

Real Estate Finance Manager

Portfolio Manager

Banking Operations Director

Credit Risk Analyst

Transaction Manager

Asset Management Director

Investment Officer

Property Finance Manager

Due Diligence Specialist

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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