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Loan And Mortgage Agreement for United Arab Emirates

Loan And Mortgage Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that establishes the terms and conditions of a loan secured by real property (mortgage). This agreement combines lending provisions under UAE Federal Laws with specific mortgage requirements, incorporating both civil law principles and optional Sharia-compliant structures. It details the loan amount, repayment terms, interest/profit rates, and security arrangements while ensuring compliance with UAE Central Bank regulations and local property laws. The document includes specific provisions for default scenarios, enforcement mechanisms, and property maintenance obligations, all structured within the UAE's unique legal framework.

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What is a Loan And Mortgage Agreement?

The Loan And Mortgage Agreement is a fundamental document in UAE property financing, used when a party seeks to obtain funding secured against real estate. It's essential for both residential and commercial property transactions in the UAE, combining conventional or Islamic financing structures with security arrangements. The agreement must comply with UAE Federal Law No. 14 of 2008 regarding mortgages, UAE Civil Code provisions, and Central Bank regulations. This document type is particularly crucial in the UAE's dynamic real estate market, where property financing requires careful consideration of both civil law and Sharia principles. The agreement typically includes detailed provisions about the loan facility, property security, payment terms, default provisions, and enforcement mechanisms, all structured to ensure enforceability within the UAE legal system.

What sections should be included in a Loan And Mortgage Agreement?

1. Parties: Identification of the Lender, Borrower, and any guarantors with full legal names and addresses

2. Background: Context of the loan and mortgage arrangement, including property details and purpose of the loan

3. Definitions: Definitions of key terms used throughout the agreement

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

5. Security: Details of the mortgage and property being used as security

6. Representations and Warranties: Statements of fact by the borrower regarding their status, the property, and their ability to enter into the agreement

7. Borrower's Covenants: Ongoing obligations of the borrower including property maintenance, insurance, and payment obligations

8. Events of Default: Circumstances that constitute default and trigger enforcement rights

9. Enforcement Rights: Lender's rights and remedies in case of default, including foreclosure procedures

10. Property Insurance: Requirements for insuring the mortgaged property

11. Assignment and Transfer: Provisions regarding the transfer of rights under the agreement

12. Notices: Process for formal communications between parties

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

14. Execution: Signature blocks and execution requirements

What sections are optional to include in a Loan And Mortgage Agreement?

1. Sharia Compliance: Required for Islamic financing structures, specifying compliance with Sharia principles

2. Guarantees: Include when there are third-party guarantors for the loan

3. Property Management: Required when specific property management obligations are imposed on the borrower

4. Pre-payment Terms: Include when early repayment is allowed, specifying conditions and penalties

5. Construction Provisions: Required when the mortgaged property is under construction

6. Multiple Properties: Include when the mortgage covers multiple properties

7. Foreign Currency Provisions: Required when loan and repayments are in different currencies

8. Co-borrower Provisions: Include when there are multiple borrowers

What schedules should be included in a Loan And Mortgage Agreement?

1. Property Description: Detailed legal description of the mortgaged property including title details

2. Payment Schedule: Detailed amortization schedule showing payment dates and amounts

3. Insurance Requirements: Specific insurance requirements and minimum coverage amounts

4. Form of Notice: Template forms for various notices under the agreement

5. Property Valuation: Initial property valuation report and methodology

6. Required Authorizations: List of required permits, consents and registrations

7. Fees and Charges: Detailed breakdown of all applicable fees and charges

8. Declaration Forms: Standard declaration forms required under UAE law

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions












































Clauses






























Relevant Industries

Banking & Financial Services

Real Estate

Construction & Development

Islamic Finance

Insurance

Legal Services

Property Management

Residential Property

Commercial Property

Investment & Fund Management

Relevant Teams

Legal

Finance

Real Estate

Risk Management

Compliance

Credit Assessment

Property Management

Islamic Banking

Corporate Banking

Mortgage Operations

Documentation

Customer Relations

Relevant Roles

Chief Financial Officer

Legal Counsel

Real Estate Manager

Mortgage Officer

Credit Risk Manager

Compliance Officer

Property Valuation Specialist

Islamic Finance Specialist

Banking Relationship Manager

Real Estate Director

Loan Officer

Risk Assessment Manager

Corporate Finance Manager

Real Estate Investment Manager

Legal Documentation 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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