Mortgage Broker Contract Template for Saudi Arabia

The Mortgage Broker Contract is essential for formalizing the relationship between licensed mortgage brokers and clients seeking Shariah-compliant property financing in Saudi Arabia. This document is required when a client engages a broker to facilitate mortgage arrangements and should be used in compliance with the Real Estate Finance Law and SAMA regulations. The contract covers crucial aspects including service scope, fee structures, compliance requirements, and professional obligations. It's particularly relevant in the context of Saudi Vision 2030's focus on increasing home ownership and developing the real estate financing sector. The agreement ensures adherence to Islamic finance principles while protecting both parties' interests under Saudi Arabian law.

1. Parties: Identification of the Mortgage Broker and the Client, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including broker's licensing status and general purpose of the arrangement

3. Definitions: Key terms used throughout the agreement, including specific Islamic finance terminology

4. Appointment and Scope of Services: Formal appointment of the broker and detailed description of services to be provided

5. Shariah Compliance: Specific provisions ensuring compliance with Islamic finance principles

6. Broker's Obligations: Detailed responsibilities including due diligence, documentation, and communication requirements

7. Client's Obligations: Client's responsibilities including information provision and cooperation

8. Fees and Payment Terms: Structure of broker's compensation, payment terms, and compliance with Shariah principles

9. Representations and Warranties: Standard declarations by both parties regarding capacity, authority, and compliance

10. Confidentiality: Provisions for handling confidential information and personal data

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Liability and Indemnification: Limitations of liability and indemnification provisions

13. Governing Law and Jurisdiction: Application of Saudi law and dispute resolution mechanisms