Real Estate Mortgage Form Template for Saudi Arabia

The Real Estate Mortgage Form is a crucial document used in Saudi Arabia when creating security over real estate property in financing transactions. It combines traditional mortgage concepts with Islamic finance principles, ensuring compliance with both Saudi civil law and Shariah requirements. The document is essential for financial institutions providing real estate financing and property owners seeking funding. It includes detailed provisions about the property, financing terms, obligations of parties, enforcement mechanisms, and necessary registrations. The form must comply with the Real Estate Finance Law of 2012 and related regulations, while also meeting the requirements of the Saudi Arabian Monetary Authority (SAMA) and Ministry of Justice. This standardized format helps ensure consistency in real estate financing transactions while protecting the interests of all parties involved.

1. Parties: Identification of the mortgagor (property owner), mortgagee (financial institution), and any guarantors

2. Background: Context of the mortgage agreement and confirmation of Shariah compliance

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

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

5. Amount Secured: The principal amount being secured by the mortgage and associated profit rate

6. Term and Payment Structure: Duration of the mortgage and detailed payment obligations

7. Security Creation: Legal provisions establishing the mortgage over the property

8. Mortgagor's Representations and Warranties: Declarations regarding property ownership, authority to mortgage, and absence of encumbrances

9. Mortgagor's Covenants: Ongoing obligations regarding property maintenance, insurance, and payment obligations

10. Events of Default: Circumstances constituting default and consequent remedies

11. Enforcement Rights: Mortgagee's rights and procedures for enforcement in case of default

12. Insurance Requirements: Mandatory insurance coverage and related obligations

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Confirmation of Saudi law application and judicial authority