Real Estate Security Agreement Template for Philippines

The Real Estate Security Agreement is a crucial document in Philippine property and financing transactions, used when real property is offered as collateral for a loan or other financial obligation. This agreement must comply with specific requirements under Philippine law, including the Civil Code, Property Registration Decree (PD 1529), and Act No. 3135 on extra-judicial foreclosure. It contains essential details about the mortgaged property, the secured obligations, rights and responsibilities of both mortgagor and mortgagee, and enforcement mechanisms. The document is particularly important in banking and real estate transactions, requiring registration with the Registry of Deeds and payment of documentary stamp tax. It provides lenders with security while ensuring property owners' rights are protected under Philippine law.

1. Parties: Identification of the Mortgagor (property owner) and Mortgagee (lender), including their complete legal names, addresses, and legal capacity

2. Background: Context of the security agreement, reference to any underlying loan or credit agreement, and purpose of the security

3. Definitions: Definitions of key terms used throughout the agreement, including property-specific terminology and Philippine legal terms

4. Grant of Security Interest: Express creation of the security interest over the property, including the nature and extent of the security

5. Description of the Secured Property: Detailed legal description of the mortgaged property, including its location, boundaries, and title details

6. Secured Obligations: Description of the obligations being secured, including principal amount, interest, and other secured amounts

7. Representations and Warranties: Mortgagor's declarations regarding ownership, authority, and property condition

8. Covenants: Ongoing obligations of the Mortgagor regarding property maintenance, insurance, taxes, and other responsibilities

9. Events of Default: Circumstances constituting default under the agreement

10. Remedies: Rights and remedies of the Mortgagee upon default, including foreclosure rights under Philippine law

11. Registration and Stamp Duty: Provisions regarding registration requirements and payment of documentary stamp tax

12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

13. Execution: Formal execution block meeting Philippine notarial requirements