Mortgage Bond Agreement Template for United Arab Emirates

The Mortgage Bond Agreement is a crucial security document used in the United Arab Emirates for creating and registering security interests over real property. It is essential for property financing transactions and must comply with UAE Federal Law No. 14 of 2008, relevant emirate-specific property laws, and UAE Central Bank regulations regarding mortgage caps and lending ratios. The document is used when a property owner seeks financing against their property or when purchasing property with financial assistance. It includes detailed provisions about the property, parties' rights and obligations, enforcement mechanisms, and registration requirements. The agreement must be executed in a format acceptable to the relevant land department and may need to incorporate Sharia-compliant principles depending on the financing structure. This document is particularly important given the UAE's strict requirements for property security registration and enforcement.

1. Parties: Identification of the Mortgagor (property owner), Mortgagee (financial institution), and any guarantors

2. Background: Context of the mortgage arrangement, reference to the principal loan agreement, and purpose of the security

3. Definitions: Key terms used throughout the agreement, including Property, Secured Obligations, Security Period, etc.

4. Creation of Security: Express provisions creating the mortgage over the Property

5. Property Description: Detailed description of the mortgaged property including title details and registration information

6. Secured Obligations: Definition and scope of the obligations secured by the mortgage

7. Representations and Warranties: Mortgagor's confirmations regarding property ownership, authority to create security, etc.

8. Covenants: Mortgagor's ongoing obligations regarding property maintenance, insurance, and use

9. Events of Default: Circumstances constituting default and triggering enforcement rights

10. Enforcement Rights: Mortgagee's rights and remedies upon default, including power of sale

11. Registration and Notices: Requirements for registration with relevant authorities and notice provisions

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

13. Governing Law and Jurisdiction: Confirmation of UAE law application and jurisdiction of UAE courts