Document background
The Standard Mortgage Contract is a fundamental legal instrument in Philippine real estate financing, used when a borrower seeks to obtain a loan secured by real property. This document is essential for both residential and commercial property transactions in the Philippines, incorporating requirements from the Civil Code, Property Registration Decree, and BSP regulations. The Standard Mortgage Contract serves multiple purposes: it creates a legally enforceable security interest in the property, protects the lender's rights in case of default, establishes the borrower's obligations, and ensures compliance with local registration requirements. It's particularly important in the Philippine context due to specific local requirements for property registration, notarization, and the involvement of the Register of Deeds. The document must be carefully drafted to include all mandatory provisions required by Philippine law while remaining clear and enforceable.
