Mortgage Release Deed Template for Saudi Arabia

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Key Requirements PROMPT example:

Mortgage Release Deed

"I need a Mortgage Release Deed for a residential property in Riyadh, where ABC Islamic Bank will release their security interest following full repayment of the mortgage on January 15, 2025; the document should be in both Arabic and English."

Document background
The Mortgage Release Deed is a crucial document in Saudi Arabian real estate transactions, used when a mortgagor has fully satisfied their debt obligations and the mortgagee agrees to release their security interest in the property. This document must be drafted in accordance with the Real Estate Finance Law (Royal Decree No. M/50) and its implementing regulations, while ensuring compliance with Shariah principles. The deed includes specific details about the original mortgage, property description, confirmation of debt satisfaction, and explicit release language. Once executed, it must be registered with the Saudi Land Registry to formally remove the mortgage encumbrance. The document is particularly important in the Saudi market given the increasing prevalence of real estate financing and the need for clear documentation that satisfies both regulatory requirements and Islamic finance principles.
Suggested Sections

1. Parties: Identification of the Mortgagee (typically a bank or financial institution) and Mortgagor (property owner), including their full legal names, addresses, and registration numbers if applicable

2. Background: Details of the original mortgage agreement, including its date, registration number, and basic terms

3. Definitions: Key terms used in the document, including 'Property', 'Mortgage', 'Release Date', and any other relevant defined terms

4. Release Declaration: Clear and unequivocal statement releasing the mortgage and relinquishing all rights and interests in the property

5. Property Details: Brief description of the mortgaged property being released, with reference to detailed description in schedule

6. Confirmation of Payment: Acknowledgment that all secured obligations have been satisfied in full

7. Authorization: Authorization for the relevant authorities to remove the mortgage registration

8. Governing Law: Confirmation that the deed is governed by the laws of Saudi Arabia and Shariah principles

9. Execution: Signature blocks for all parties and required witnesses

Optional Sections

1. Partial Release Provisions: Required when only part of the mortgaged property is being released while maintaining security over other portions

2. Multiple Property Provisions: Needed when the release involves multiple properties with different registration details

3. Outstanding Obligations: Required when there are any remaining obligations or conditions that survive the release

4. Further Assurance: Optional clause committing parties to execute any additional documents needed to effect the release

5. Power of Attorney: Required when the release is being executed through an authorized representative

Suggested Schedules

1. Schedule 1 - Property Description: Detailed legal description of the property, including title deed number, plot number, and location details

2. Schedule 2 - Original Mortgage Details: Copy or details of the original mortgage agreement, including registration numbers and date

3. Schedule 3 - Required Regulatory Forms: Any standard forms required by Saudi authorities for mortgage release registration

4. Schedule 4 - Powers of Attorney: Copies of any relevant powers of attorney if the document is being executed by representatives

5. Schedule 5 - Payment Confirmation: Details or evidence of final payment or satisfaction of the secured obligations

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 Industries

Banking & Finance

Real Estate

Islamic Finance

Legal Services

Property Development

Construction

Housing Finance

Commercial Property

Relevant Teams

Legal

Real Estate

Compliance

Islamic Banking

Property Registration

Documentation

Risk Management

Operations

Corporate Banking

Retail Banking

Relevant Roles

Legal Counsel

Property Lawyer

Banking Officer

Mortgage Officer

Real Estate Manager

Compliance Officer

Shariah Compliance Manager

Property Registration Officer

Real Estate Finance Manager

Document Controller

Legal Director

Banking Operations Manager

Risk Manager

Title Officer

Islamic Finance Specialist

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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