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Purchase Money Deed Of Trust Template for United Arab Emirates

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Key Requirements PROMPT example:

Purchase Money Deed Of Trust

"I need a Purchase Money Deed of Trust for a commercial property in Dubai Healthcare City, with Shariah-compliant financing structure and involving multiple international lenders, to be executed by March 2025."

Document background
The Purchase Money Deed of Trust is a crucial document in UAE real estate financing transactions, used when a property purchase is partially financed by a lender. This security instrument creates a trust arrangement where the trustee holds the property title as security for the purchase money loan, protecting the lender's interests while allowing the borrower to take possession of the property. The document must comply with UAE federal laws, including Federal Law No. 5 of 1985 (Civil Code) and relevant emirate-specific property regulations. It contains essential provisions regarding property rights, payment obligations, default remedies, and enforcement mechanisms. The structure can be adapted to accommodate both conventional and Islamic financing principles, making it versatile in the UAE market. When drafting a Purchase Money Deed of Trust, particular attention must be paid to local property registration requirements, security interest creation, and enforcement mechanisms available under UAE law.
Suggested Sections

1. Parties: Identifies the Borrower (Trustor), Lender (Beneficiary), and Trustee, including their full legal names and addresses

2. Background: Explains the context of the transaction, including the purchase of the property and the loan arrangement

3. Definitions: Defines key terms used throughout the document, including Property, Secured Obligations, and Default Events

4. Grant of Property: Legal language conveying the property interest to the Trustee, including precise property description

5. Secured Obligations: Details of the debt being secured, including principal amount, interest, and payment terms

6. Borrower's Covenants: Borrower's obligations including property maintenance, insurance, taxes, and compliance with laws

7. Property Insurance: Requirements for property insurance, coverage types, and claim procedures

8. Default Provisions: Definition of default events and consequences, including acceleration and foreclosure rights

9. Remedies: Legal remedies available to the Beneficiary in case of default, including power of sale

10. Property Rights and Obligations: Detailed rights and responsibilities regarding property use and maintenance

11. Assignment and Transfer: Provisions regarding the transfer or assignment of rights under the deed

12. Governing Law and Jurisdiction: Specifies UAE law as governing law and relevant emirate's courts' jurisdiction

13. Notices: Requirements for giving notice under the deed, including acceptable methods and addresses

Optional Sections

1. Islamic Finance Compliance: Required when the transaction needs to comply with Shariah principles

2. Environmental Provisions: Required for commercial properties or when environmental risks are present

3. Rental Income Assignment: Used when the property generates rental income that will be assigned as additional security

4. Construction Provisions: Required when the property is under construction or major renovations are planned

5. Multiple Beneficiaries: Required when there are multiple lenders sharing the security interest

6. Cross-Collateralization: Used when the deed secures multiple loans or obligations

7. Foreign Ownership Provisions: Required when the borrower is a foreign national or entity

Suggested Schedules

1. Property Description Schedule: Detailed legal description of the property, including boundaries and registration details

2. Payment Schedule: Detailed breakdown of payment amounts, dates, and amortization schedule

3. Insurance Requirements: Specific insurance requirements including types, amounts, and approved insurers

4. Permitted Encumbrances: List of existing liens or encumbrances that are permitted on the property

5. Form of Transfer: Template for property transfer documentation required by local authorities

6. Property Title Documents: Copies of relevant title documents and registration certificates

7. Power of Attorney: Form of power of attorney for trustee actions

8. Required Registrations: List of required registrations with various authorities and status

Authors

Alex Denne

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

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Relevant Industries

Real Estate

Banking and Finance

Islamic Finance

Construction

Property Development

Legal Services

Insurance

Commercial Property

Residential Property

Investment and Asset Management

Relevant Teams

Legal

Real Estate

Finance

Compliance

Risk Management

Property Management

Islamic Banking

Operations

Credit Administration

Corporate Banking

Relevant Roles

Real Estate Lawyer

Property Finance Manager

Legal Counsel

Mortgage Officer

Real Estate Manager

Compliance Officer

Property Registration Officer

Islamic Finance Specialist

Trust Officer

Real Estate Investment Manager

Property Development Director

Risk Management Officer

Real Estate Transaction Manager

Banking Operations Manager

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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