Seller Financed Mortgage Contract Template for Saudi Arabia

The Seller Financed Mortgage Contract is essential in Saudi Arabian real estate transactions where traditional bank financing is not preferred or available. This document type is particularly useful for property sellers willing to finance the buyer's purchase directly, while ensuring compliance with Islamic finance principles and Saudi Arabian law. It provides a comprehensive framework for the transaction, including property details, payment terms, security arrangements, and transfer conditions. The contract must strictly adhere to Sharia principles, particularly in structuring the profit component to avoid traditional interest (riba), while also meeting the requirements of Saudi Arabian real estate laws and SAMA regulations. This document type is commonly used in both residential and commercial property transactions, providing security for the seller while offering flexible financing options to buyers.

1. Parties: Identification of the Seller/Financier and Buyer/Mortgagor with full legal names and details

2. Background: Context of the transaction, including property details and parties' intention to enter into a Sharia-compliant seller financing arrangement

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

4. Sale and Purchase: Core terms of the property sale including purchase price and payment structure

5. Financing Terms: Sharia-compliant financing structure, payment schedule, and profit rate

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

7. Security Provisions: Terms of the mortgage security and registration requirements

8. Representations and Warranties: Statements of fact and assurances from both parties

9. Buyer's Covenants: Ongoing obligations of the buyer including property maintenance and insurance

10. Default and Enforcement: Consequences of default and enforcement procedures compliant with Saudi law

11. Title Transfer: Process and conditions for transferring property title

12. Registration: Requirements for registering the mortgage and transfer with relevant authorities

13. Notices: Communication procedures between parties

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