The Mortgage Modification Agreement is a crucial document in South African property finance that allows parties to modify an existing mortgage bond without creating an entirely new agreement. It's commonly used when borrowers need to restructure their mortgage terms due to financial circumstances, interest rate changes, or other material modifications to the original agreement. The document must strictly comply with the National Credit Act 34 of 2005, the Banks Act, and other relevant South African legislation. It typically includes details of the original mortgage, specific changes being made, and confirmations that other terms remain unchanged. This agreement is particularly important during economic downturns or when borrowers face financial hardship, providing a legal framework for loan modification while protecting both lender and borrower interests under South African law.

1. Parties: Identification of the Mortgagor (borrower) and Mortgagee (lender), including full legal names, registration numbers for companies, and physical addresses

2. Background: Details of the original mortgage agreement, including date, mortgage bond number, property description, and reasons for modification

3. Definitions: Definitions of key terms used in the agreement, including references to terms from the original mortgage agreement that remain applicable

4. Interpretation: Rules for interpreting the agreement, including relationship with original mortgage agreement

5. Effective Date: Specification of when the modifications take effect

6. Modifications to Original Agreement: Detailed description of all changes to the original mortgage terms, including payment amounts, interest rates, or loan term changes

7. Confirmation of Other Terms: Confirmation that all other terms of the original mortgage remain in full force and effect

8. Costs: Allocation of costs related to the modification, including legal and registration fees

9. Representations and Warranties: Statements by both parties confirming their authority and capacity to enter into the modification

10. Governing Law: Confirmation that South African law governs the agreement

11. Signatures: Execution clause and signature blocks for all parties