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The Real Estate Security Agreement is a crucial document in South African property financing and secured lending transactions. It is primarily used when real property needs to be provided as collateral for financial obligations, such as loans or credit facilities. The document must comply with South African property law, particularly the Deeds Registries Act 47 of 1937, and requires registration at the Deeds Office to be effective. The agreement typically includes detailed descriptions of the secured property, the secured obligations, representations and warranties, ongoing obligations of the property owner, enforcement mechanisms, and various technical requirements specific to South African property law. It is commonly used in both commercial and residential property transactions, though the complexity and specific provisions may vary depending on the nature of the property and the parties involved.

1. Parties: Identification of the security provider (property owner) and security holder (typically a financial institution or creditor), including full legal names and registration details

2. Background: Context of the security arrangement, including reference to any underlying obligations or facilities being secured

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules of interpretation

4. Grant of Security: Explicit creation and grant of the security interest over the property

5. Secured Property Description: Detailed description of the property being secured, including physical address, registration details, and title deed information

6. Secured Obligations: Description of the obligations being secured, including principal amounts, interest, and other secured liabilities

7. Representations and Warranties: Statements by the security provider regarding ownership, authority, and status of the property

8. Security Provider Obligations: Ongoing obligations regarding property maintenance, insurance, payment of rates and taxes, and other property-related duties

9. Events of Default: Comprehensive list of circumstances constituting default under the agreement

10. Enforcement Rights: Rights and remedies of the security holder upon default, including power of sale

11. Registration and Perfection: Requirements and procedures for registering the security interest at the Deeds Office

12. Costs and Expenses: Allocation of costs related to preparation, registration, and enforcement of the security

13. General Provisions: Standard clauses covering notices, amendments, governing law, jurisdiction, etc.