The Mortgage Agreement is a crucial legal instrument in Pakistani property financing, used to secure loans against real estate. This document is essential when a borrower seeks financing for property purchase, construction, or refinancing, creating a legal charge over the property in favor of the lending institution. The agreement must comply with various Pakistani laws, including the Transfer of Property Act 1882, Registration Act 1908, and where applicable, Islamic banking regulations. It can be used for both residential and commercial properties, incorporating necessary provisions for property description, loan terms, security creation, borrower obligations, and enforcement rights. The document requires proper registration with relevant authorities and payment of applicable stamp duties to be legally enforceable in Pakistan.

1. Parties: Identifies the mortgagor (borrower), mortgagee (lender), and any guarantors with their full legal names, addresses, and registration details

2. Background: Sets out the context of the mortgage, including the purpose of the loan and brief property description

3. Definitions: Defines key terms used throughout the agreement, including technical banking terms and property-related definitions

4. Loan Amount and Purpose: Specifies the principal amount, interest rate, and purpose of the mortgage loan

5. Property Details: Legal description of the mortgaged property including its location, boundaries, and registration details

6. Security Creation: Creates the mortgage charge over the property and specifies the type of mortgage under Pakistani law

7. Representations and Warranties: Statements by the mortgagor about their authority, property ownership, and absence of encumbrances

8. Covenants: Ongoing obligations of the mortgagor including property maintenance, insurance, and payment obligations

9. Payment Terms: Details of repayment schedule, installment amounts, and payment methods

10. Events of Default: Lists circumstances constituting default and consequences thereof

11. Enforcement Rights: Lender's rights and remedies upon default, including power of sale

12. Insurance: Requirements for property insurance and assignment of policies

13. Notices: Process for serving notices between parties

14. Governing Law and Jurisdiction: Confirms Pakistani law as governing law and specifies jurisdiction for disputes