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The Seller Financed Mortgage Contract is utilized in Pakistan when traditional bank financing is not preferred or available, allowing property sellers to directly finance the buyer's purchase. This arrangement is particularly relevant in scenarios where buyers seek alternative financing options or when sellers wish to generate regular income through mortgage payments. The document must comply with Pakistani property and contract laws, including the Transfer of Property Act 1882 and Registration Act 1908, while potentially incorporating Islamic financing principles. It covers crucial elements such as property details, payment terms, security creation, default provisions, and enforcement mechanisms. This type of agreement is commonly used in both residential and commercial property transactions, providing flexibility in financing terms while ensuring legal protection for both parties.

1. Parties: Identification of the Seller/Mortgagee and Buyer/Mortgagor with complete legal names and addresses

2. Background: Context of the transaction, including property details and parties' intention to enter into a seller-financing arrangement

3. Definitions: Key terms used throughout the agreement including Property, Mortgage Amount, Payment Terms, Default, etc.

4. Property Description: Detailed legal description of the property including boundaries, registration details, and title information

5. Purchase Price and Financing Terms: Total purchase price, down payment, financed amount, and complete payment schedule

6. Interest Rate and Payment Calculations: Specified interest rate (or profit rate for Islamic financing), payment calculation methodology, and amortization schedule

7. Security Creation: Creation of the mortgage charge and security interest in favor of the seller

8. Payment Terms and Method: Detailed payment obligations, including due dates, payment methods, and late payment consequences

9. Default and Remedies: Events of default and seller's remedies including foreclosure rights

10. Property Maintenance and Insurance: Buyer's obligations regarding property maintenance and required insurance coverage

11. Transfer Restrictions: Limitations on the buyer's right to sell or transfer the property while mortgage is active

12. Representations and Warranties: Standard declarations by both parties regarding their capacity and authority

13. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and relevant jurisdiction for disputes

14. Notices: Process and addresses for formal communications between parties