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Real Estate Mortgage Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Real Estate Mortgage Agreement

"I need a Real Estate Mortgage Agreement under Hong Kong law for a commercial property in Tsim Sha Tsui, with provisions for multiple tenants and assignment of rental income, to be used by a Singapore-based bank as mortgagee."

Document background
A Real Estate Mortgage Agreement is a fundamental document in Hong Kong property financing transactions, used when a property owner borrows money using their real estate as security. This document is essential for both residential and commercial property transactions in Hong Kong, requiring compliance with local property laws, banking regulations, and registration requirements. The agreement must follow specific formalities under Hong Kong law, including requirements set out in the Conveyancing and Property Ordinance and Land Registration Ordinance. It contains detailed provisions about the property, loan terms, parties' rights and obligations, default scenarios, and enforcement mechanisms. The document is particularly important in Hong Kong's active real estate market, where property mortgages are a common financing tool for both individual and corporate borrowers.
Suggested Sections

1. Parties: Identification of mortgagor and mortgagee with full legal names and addresses

2. Background: Recitals explaining the context of the mortgage, property ownership, and intention to create security

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. The Mortgage: Core provisions creating the mortgage, including the grant of security and secured obligations

5. Property Details: Detailed description of the mortgaged property and its registration particulars

6. Loan Terms: Principal amount, interest rate, repayment terms, and payment mechanics

7. Mortgagor's Representations and Warranties: Statements about property ownership, authority to mortgage, and absence of encumbrances

8. Mortgagor's Covenants: Ongoing obligations including property maintenance, insurance, and payment of rates and management fees

9. Events of Default: Circumstances constituting default and consequences

10. Mortgagee's Powers and Remedies: Rights and remedies upon default, including power of sale

11. Costs and Expenses: Allocation of legal fees, stamp duty, and other costs

12. Notices: Method and addresses for serving notices

13. General Provisions: Standard boilerplate clauses including severability, entire agreement, and governing law

14. Execution: Signature blocks and execution formalities

Optional Sections

1. Insurance Requirements: Detailed insurance obligations when specific insurance types are required beyond standard fire insurance

2. Property Management: Additional provisions for properties in multi-unit developments or subject to deed of mutual covenant

3. Guarantee Provisions: When there is a third-party guarantor for the mortgage obligations

4. Further Advance Provisions: Where the parties contemplate possible future increases in the mortgage amount

5. Rental Provisions: When the property is or may be rented out, including assignment of rental income

6. Additional Security: When other assets or properties are included as additional security

7. Pre-existing Tenancies: Where the property is subject to existing tenancy agreements

8. Foreign Currency Provisions: When loan or payments are in foreign currency

Suggested Schedules

1. Schedule 1 - Property Description: Detailed legal description of the property including lot number, address, and registered particulars

2. Schedule 2 - Payment Schedule: Detailed repayment schedule including installment amounts and due dates

3. Schedule 3 - Insurance Requirements: Specific insurance requirements including types, coverage amounts, and named insureds

4. Schedule 4 - Existing Encumbrances: List of any permitted existing encumbrances or restrictions on the property

5. Schedule 5 - Form of Notice: Standard forms for various notices under the mortgage

6. Appendix A - Property Plans: Floor plans or property plans where relevant

7. Appendix B - Special Conditions: Any special conditions or requirements specific to the property or transaction

Authors

Alex Denne

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

Relevant legal definitions


















































Clauses









































Relevant Industries

Banking & Financial Services

Real Estate

Property Development

Insurance

Legal Services

Property Management

Construction

Investment & Asset Management

Relevant Teams

Legal

Real Estate

Compliance

Risk Management

Credit

Property Management

Operations

Finance

Insurance

Asset Management

Relevant Roles

Legal Counsel

Property Lawyer

Mortgage Officer

Real Estate Manager

Compliance Officer

Risk Manager

Property Manager

Banking Officer

Credit Manager

Real Estate Agent

Conveyancing Manager

Property Developer

Financial Advisor

Insurance Manager

Asset 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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