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Owner Finance Contract
"I need an Owner Finance Contract for a commercial property in Doha valued at 5 million QAR, with a 20% down payment and monthly installments over 10 years, including specific provisions for early repayment and property maintenance standards."
1. Parties: Identification of the Property Owner (Financier) and the Purchaser (Borrower), including full legal names, addresses, and relevant identification numbers
2. Background: Context of the transaction, brief description of the property, and the parties' intention to enter into an owner-financing arrangement
3. Definitions: Key terms used throughout the agreement, including technical, financial, and legal terminology
4. Property Details: Comprehensive description of the property, including legal title details, location, and registration information
5. Purchase Price and Payment Terms: Total purchase price, down payment, financing amount, payment schedule, and profit rate (instead of interest, for Sharia compliance)
6. Security and Collateral: Details of property mortgage/charge and any additional security arrangements
7. Purchaser's Covenants: Obligations of the purchaser including maintenance, insurance, and use of the property
8. Owner's Representations and Warranties: Confirmations regarding property ownership, authority to sell, and absence of encumbrances
9. Default and Remedies: Events of default and corresponding remedies, including enforcement procedures
10. Transfer of Title: Conditions and process for the final transfer of property title upon completion of payments
11. Governing Law and Jurisdiction: Confirmation of Qatar law as governing law and jurisdiction for disputes
1. Islamic Finance Compliance: Specific provisions ensuring compliance with Sharia principles - required if the transaction needs to be explicitly Sharia-compliant
2. Property Management: Terms regarding property management during the financing period - needed for commercial properties or when specific management arrangements are required
3. Insurance Requirements: Detailed insurance obligations - needed for high-value properties or when specific risks need to be covered
4. Early Payment Provisions: Terms for early repayment or settlement - optional but recommended for flexibility
5. Third Party Rights: Provisions regarding rights of third parties - needed if there are existing tenants or other rights holders
6. Force Majeure: Provisions for unforeseen circumstances - recommended for long-term financing arrangements
1. Property Description Schedule: Detailed technical description of the property, including boundaries, area, and specifications
2. Payment Schedule: Detailed breakdown of payment amounts, due dates, and profit calculations
3. Property Title Documents: Copies of relevant title documents and registration certificates
4. Condition Report: Current condition of the property and any existing defects or issues
5. Insurance Requirements: Detailed specifications of required insurance coverage
6. Form of Transfer Deed: Template for the final property transfer deed to be executed upon completion
7. Property Maintenance Standards: Required standards for property maintenance during the financing period
Authors
Real Estate
Banking & Finance
Islamic Finance
Construction
Property Development
Insurance
Legal Services
Property Management
Residential Property
Commercial Property
Legal
Real Estate
Finance
Compliance
Risk Management
Property Management
Islamic Banking
Corporate Affairs
Operations
Investment
Real Estate Manager
Property Developer
Legal Counsel
Finance Director
Compliance Officer
Property Manager
Real Estate Agent
Islamic Finance Specialist
Contract Manager
Risk Manager
Chief Financial Officer
Real Estate Investment Manager
Title Registration Officer
Property Valuation Specialist
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