Document background
The Loan And Mortgage Agreement is a fundamental document in Nigerian secured lending transactions, used when providing financing secured against real property. It serves dual purposes: documenting the loan facility terms and creating a legal mortgage over property as security. This document is essential for both commercial and residential property financing in Nigeria, requiring compliance with the Land Use Act, Central Bank of Nigeria regulations, and state-specific property laws. It typically includes comprehensive details about the loan facility, property description, payment terms, borrower obligations, and enforcement rights. The agreement must be properly stamped and registered with relevant authorities to ensure enforceability under Nigerian law. It's commonly used by banks, mortgage institutions, and other financial institutions when providing property-backed financing to individuals or businesses.
