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The Mortgage Loan Contract is a fundamental document in Saudi Arabian real estate financing, used when a financial institution provides Shariah-compliant property financing to individuals or businesses. This document is essential for any property purchase or refinancing transaction in Saudi Arabia where a loan is secured against real estate. The contract must comply with the Real Estate Finance Law, SAMA regulations, and Islamic banking principles, making it distinct from conventional mortgages in other jurisdictions. It includes specific provisions for profit calculation instead of interest, mandatory regulatory disclosures, and special enforcement mechanisms aligned with Saudi law. The document is typically used by banks, finance companies, and real estate financing firms operating in Saudi Arabia, requiring careful consideration of both regulatory compliance and Shariah principles.

1. Parties: Identification of the lender (financial institution) and borrower(s), including full legal names and details

2. Background: Context of the agreement, including property details and purpose of the loan

3. Definitions: Key terms used throughout the agreement, including financial and technical terms

4. Facility Details: Specific details of the loan including amount, purpose, and tenure

5. Property Details: Comprehensive description of the mortgaged property and its ownership status

6. Shariah Compliance Declaration: Statement confirming the agreement's compliance with Islamic law principles

7. Payment Terms: Details of repayment schedule, profit rate, and payment mechanisms

8. Security and Mortgage: Terms creating and governing the mortgage over the property

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

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

11. Events of Default: Circumstances constituting default and consequences

12. Enforcement Rights: Lender's rights and remedies in case of default

13. Insurance Requirements: Mandatory insurance coverage for the property

14. Costs and Expenses: Allocation of fees, charges, and expenses

15. Notices: Communication procedures between parties

16. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution procedures