Private Mortgage Contract Template for Philippines

A Private Mortgage Contract is essential in Philippine real estate transactions where private lending is secured by real property. This document is commonly used when individuals or private entities, rather than traditional banking institutions, provide financing for property purchases or other purposes using real estate as collateral. The contract must comply with the Civil Code of the Philippines, the Property Registration Decree (PD 1529), and Act 3135 regarding extrajudicial foreclosure. It typically includes detailed property descriptions, loan terms, payment schedules, default provisions, and remedies. The document requires notarization and registration with the Register of Deeds to be legally effective and enforceable in the Philippines.

1. Parties: Identification of the Mortgagor (borrower) and Mortgagee (lender) with complete details including names, addresses, and civil status as required by Philippine law

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

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Comprehensive description of the mortgaged property, including certificate of title number, location, and boundaries as registered

5. Loan Amount and Terms: Principal amount, interest rate, payment terms, and duration of the loan

6. Security Provisions: Terms establishing the property as security for the loan and the nature of the mortgage

7. Representations and Warranties: Declarations by the Mortgagor regarding property ownership, authority to mortgage, and absence of encumbrances

8. Mortgagor's Covenants: Obligations of the borrower including maintenance of property, payment of taxes, and insurance requirements

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

10. Remedies: Rights and remedies of the Mortgagee in case of default, including foreclosure rights under Act 3135

11. Registration and Notices: Requirements for registration of the mortgage and process for serving notices

12. Governing Law: Specification of Philippine law as governing law and jurisdiction clause

13. Execution: Signature blocks and notarization requirements