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The Contract of Real Estate Mortgage is a fundamental document in New Zealand's property financing landscape, essential for securing loans against real property. This document is used when a borrower (mortgagor) seeks to provide real estate as security for a loan from a lender (mortgagee). It must comply with New Zealand's Property Law Act 2007, Land Transfer Act 2017, and relevant banking regulations. The contract details the property's legal description, loan terms, payment obligations, default provisions, and the lender's enforcement rights. It's particularly crucial for property purchases, refinancing, or using existing property as security for business or personal loans. The document must be registered with the New Zealand Land Registry to create a legally enforceable security interest.

1. Parties: Identifies the mortgagor (borrower/property owner) and mortgagee (lender), including full legal names, addresses, and any registration numbers for companies

2. Background: Outlines the context of the mortgage, including reference to any facility agreement, property purchase, or refinancing arrangement

3. Definitions: Defines key terms used throughout the document, including Property, Secured Money, Secured Obligations, and other relevant terms

4. Grant of Mortgage: The operative clause where the mortgagor grants the mortgage over the property to the mortgagee as security

5. Property Details: Specific details of the mortgaged property, including legal description and title reference

6. Secured Obligations: Details of the debt or obligations secured by the mortgage, including principal sum, interest rates, and payment terms

7. Mortgagor's Covenants: Standard promises by the mortgagor, including maintenance of the property, payment of rates, and insurance obligations

8. Events of Default: Circumstances that constitute default under the mortgage, triggering the mortgagee's enforcement rights

9. Mortgagee's Powers: Powers of the mortgagee, including power of sale, right to take possession, and appointment of receivers

10. Insurance Requirements: Specific requirements for property insurance, including types of coverage required and mortgagee's interest

11. General Provisions: Standard clauses covering assignments, notices, governing law, and other administrative matters