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The Mortgage Modification Agreement is utilized when parties to an existing mortgage in Saudi Arabia need to alter the original terms of their agreement. This might be necessary due to changes in the borrower's financial circumstances, market conditions, or regulatory requirements. The document must comply with the Saudi Arabian Mortgage Law of 2012, SAMA regulations, and Shariah principles, making it unique to the Saudi Arabian jurisdiction. It typically includes detailed information about the original mortgage, specific modifications being made, and necessary approvals from both regulatory and Shariah perspectives. The agreement serves as a crucial tool for financial institutions and property owners to adapt existing mortgage arrangements while maintaining legal compliance and protecting all parties' interests.

1. Parties: Identification of the mortgagor (borrower), mortgagee (financial institution), and any guarantors or additional parties

2. Background: Details of the original mortgage agreement, including its date, registration details, and reason for modification

3. Definitions: Definitions of key terms used in the agreement, including references to original mortgage terms that remain applicable

4. Acknowledgment of Existing Mortgage: Confirmation of the current status of the original mortgage, outstanding amounts, and compliance status

5. Modification Terms: Specific changes being made to the original mortgage agreement, clearly stating both original and modified terms

6. Shariah Compliance Declaration: Statement confirming the modifications comply with Islamic finance principles

7. Effective Date: When the modifications take effect and any conditions precedent

8. Reaffirmation of Security: Confirmation that the original security/collateral remains in effect

9. Representations and Warranties: Updated declarations by parties regarding their capacity and authority to modify the agreement

10. Governing Law and Jurisdiction: Confirmation of Saudi law application and relevant court jurisdiction

11. Execution: Signature blocks and execution requirements