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The Home Loan Agreement is a fundamental document in Nigerian real estate financing, used when an individual or entity seeks to obtain funding for residential property purchase or construction. This document is essential in the Nigerian banking sector, where home financing must comply with strict regulatory requirements set by the Central Bank of Nigeria and other regulatory bodies. The agreement serves multiple purposes: it protects the lender's interests by securing the loan against the property, provides clear terms and conditions for the borrower, and ensures compliance with Nigerian banking, property, and consumer protection laws. It becomes necessary when a prospective homeowner requires financial assistance to purchase or construct a residential property, and the lender needs a legally binding framework for the loan arrangement. The document typically includes detailed provisions about loan disbursement, repayment schedules, security arrangements, borrower obligations, and default remedies, all structured within the context of Nigerian legal requirements and banking practices.

1. Parties: Identifies and defines the Lender and the Borrower with their full legal names, addresses, and registration details

2. Background: Sets out the context of the loan agreement, including the purpose of the loan for home purchase/construction

3. Definitions: Defines all key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the principal amount of the loan and confirms its purpose for home purchase/construction

5. Interest Rate: Details the applicable interest rate, whether fixed or variable, and how it's calculated

6. Term and Repayment: Specifies the duration of the loan and the repayment schedule

7. Security: Details of the mortgage/charge over the property and any additional security required

8. Conditions Precedent: Conditions that must be satisfied before the loan is disbursed

9. Borrower's Representations and Warranties: Statements of fact and promises made by the borrower about their circumstances

10. Borrower's Covenants: Ongoing obligations of the borrower throughout the loan term

11. Events of Default: Circumstances that constitute default and the lender's rights in such events

12. Insurance: Requirements for property insurance and other mandatory insurance coverage

13. Assignment and Transfer: Rules regarding the transfer or assignment of rights under the agreement

14. Notices: How formal communications between parties should be made

15. Governing Law and Jurisdiction: Confirms Nigerian law as governing law and specifies jurisdiction for disputes