Mortgage Purchase Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Mortgage Purchase Contract

"I need a Mortgage Purchase Contract for a commercial warehouse property in Riyadh, with completion scheduled for March 2025, including specific provisions for existing tenant rights and an installment-based payment structure compliant with Islamic finance principles."

Document background
The Mortgage Purchase Contract is a crucial document used in Saudi Arabian real estate transactions where property acquisition is combined with Islamic financing. This document is essential when a purchaser requires Shariah-compliant financing to complete a property purchase, whether for commercial or residential purposes. It encompasses both the sale agreement and the mortgage arrangement, ensuring compliance with Saudi Arabian real estate laws, SAMA regulations, and Islamic finance principles. The contract includes detailed provisions for property transfer, financing terms, security arrangements, and registration requirements. It's particularly important that this document adheres to strict Shariah compliance requirements while maintaining enforceability under Saudi law, making it a complex but essential instrument in Saudi Arabian property transactions.
Suggested Sections

1. Parties: Identification of all parties including purchaser, seller, and any financial institution involved

2. Background: Context of the transaction and brief description of the property and purpose

3. Definitions: Key terms used throughout the agreement including property, purchase price, mortgage amount, and relevant dates

4. Property Details: Comprehensive description of the property including title details and registration information

5. Purchase Terms: Details of the purchase price, payment structure, and completion requirements

6. Mortgage Terms: Shariah-compliant financing structure, repayment terms, and profit rate

7. Conditions Precedent: Prerequisites for completion including property inspection, title verification, and regulatory approvals

8. Completion Process: Steps for transfer of property ownership and mortgage registration

9. Representations and Warranties: Statements of fact and assurances from all parties

10. Covenants: Ongoing obligations of the parties including property maintenance and insurance

11. Default Provisions: Consequences of default and enforcement procedures

12. Registration and Notices: Requirements for property and mortgage registration with relevant authorities

13. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution procedures

Optional Sections

1. Multiple Properties Schedule: Required when the purchase involves more than one property

2. Special Payment Arrangements: Used when there are installment plans or unique payment structures

3. Property Management: Included when specific management arrangements are required post-purchase

4. Additional Security: Required when additional collateral or guarantees are provided

5. Third Party Rights: Included when there are existing tenants or other third-party interests

6. Development Obligations: Required for properties under construction or requiring development

7. Shariah Board Approval: Specific terms required by Shariah supervisory board

8. Tax Provisions: Special tax considerations or arrangements if applicable

Suggested Schedules

1. Property Schedule: Detailed property description, boundaries, and title information

2. Payment Schedule: Detailed breakdown of purchase price and payment installments

3. Mortgage Payment Schedule: Amortization schedule showing profit and principal payments

4. Property Condition Report: Detailed assessment of property condition at purchase

5. Required Permits: List of governmental and regulatory approvals

6. Property Documents: List of title deeds and other property-related documents

7. Form of Transfer: Template documents for property transfer registration

8. Insurance Requirements: Detailed insurance specifications and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Real Estate

Banking & Finance

Islamic Finance

Construction

Property Development

Commercial Property

Residential Property

Property Investment

Legal Services

Relevant Teams

Legal

Real Estate

Finance

Compliance

Risk Management

Islamic Banking

Property Management

Corporate Finance

Investment

Operations

Relevant Roles

Legal Counsel

Real Estate Manager

Finance Director

Compliance Officer

Property Manager

Islamic Finance Specialist

Risk Manager

Chief Financial Officer

Real Estate Director

Banking Relationship Manager

Property Investment Manager

Legal Director

Shariah Compliance Officer

Real Estate Transaction Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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