The Mortgage Note Form is a crucial document in South African property financing transactions, used when a borrower seeks to obtain a loan secured against immovable property. This document type combines elements of both a promissory note and a security agreement, establishing the fundamental terms of the mortgage relationship between the lender and borrower. It must comply with various South African legislation, including the National Credit Act 34 of 2005, the Deeds Registries Act 47 of 1937, and other relevant banking and property laws. The form includes essential information such as loan amount, interest rates, repayment terms, property details, and security provisions, serving as a cornerstone document for property financing transactions in South Africa.

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

2. Background: Brief context of the mortgage agreement, including reference to the property purchase or refinancing arrangement

3. Definitions: Clear definitions of key terms used throughout the document, including technical and financial terms

4. Property Details: Full legal description of the mortgaged property, including erf number, physical address, and title deed details

5. Loan Amount and Terms: Principal amount, interest rate, term of the loan, and payment schedule

6. Security Provisions: Details of the mortgage bond registration and security provided over the property

7. Payment Terms: Specific payment obligations, including installment amounts, payment dates, and payment methods

8. Interest Calculation: Method of interest calculation, adjustment provisions, and default interest rates

9. Borrower's Obligations: Maintenance requirements, insurance obligations, and other ongoing responsibilities of the borrower

10. Events of Default: Circumstances constituting default and consequences thereof

11. Enforcement Rights: Lender's rights and remedies in case of default

12. Costs and Charges: All fees, charges, and costs associated with the mortgage

13. General Provisions: Standard clauses including notices, amendments, and governing law