Home Credit Agreement Template for Saudi Arabia

The Home Credit Agreement is a fundamental document used in Saudi Arabian residential property financing transactions, structured to comply with both Shariah principles and local regulations. It is typically used when individuals seek Islamic financing for home purchases, whether through traditional bank financing or government-subsidized programs under Saudi Vision 2030. The agreement incorporates essential elements such as the chosen Islamic financing structure (usually Murabaha or Ijara), payment terms, property details, and security arrangements. It must comply with Saudi Central Bank (SAMA) regulations, consumer protection laws, and Real Estate Finance Law requirements. The document is particularly relevant for financial institutions offering home financing products and customers seeking Shariah-compliant property financing solutions in Saudi Arabia.

1. Parties: Identification of the finance provider and the customer, including full legal names and contact details

2. Background: Context of the agreement, including property details and confirmation of Shariah compliance

3. Definitions: Definitions of key terms used throughout the agreement, including Islamic finance terminology

4. Financing Structure: Details of the Shariah-compliant financing structure being used (e.g., Murabaha, Ijara)

5. Property Details: Comprehensive description of the property being financed, including legal title information

6. Financing Amount and Payment Terms: Total financing amount, payment schedule, and profit rate calculation method

7. Security and Title: Details of mortgage registration and security arrangements

8. Customer Representations and Warranties: Customer's confirmations regarding their eligibility and financial status

9. Finance Provider Representations: Finance provider's confirmations regarding their regulatory status and compliance

10. Covenants: Ongoing obligations of the customer during the financing term

11. Events of Default: Circumstances constituting default and consequences

12. Termination Rights: Conditions under which either party may terminate the agreement

13. Notices: Process for formal communications between parties

14. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution process

15. Execution: Signature blocks and attestation requirements