Private Mortgage Contract Template for United Arab Emirates

The Private Mortgage Contract is a crucial legal instrument used in the United Arab Emirates for securing loans against real property. It serves as the primary document establishing the rights and obligations between lenders and borrowers in property financing transactions. The agreement must comply with UAE Federal Laws, including UAE Civil Code (Federal Law No. 5 of 1985) and relevant emirate-specific property laws, while potentially incorporating Sharia-compliant structures common in the UAE market. This document is essential for both conventional and Islamic property financing, detailing crucial elements such as property specifications, payment terms, enforcement mechanisms, and registration requirements. The Private Mortgage Contract is typically required for property purchases, refinancing arrangements, or when using existing property as security for new financing.

1. Parties: Identification of the Mortgagor (borrower) and Mortgagee (lender), including full legal names, Emirates ID numbers, and contact details

2. Background: Context of the mortgage agreement, including the purpose of the loan and brief description of the property being mortgaged

3. Definitions: Definitions of key terms used throughout the agreement, including technical and legal terminology

4. Property Details: Comprehensive description of the mortgaged property, including title deed number, location, size, and registration details

5. Loan Amount and Terms: Specification of the principal amount, profit rate/interest, tenure, and payment schedule

6. Security and Registration: Details of the mortgage registration with relevant authorities and security creation process

7. Representations and Warranties: Statements and guarantees made by both parties regarding their capacity, authority, and property status

8. Covenants: Ongoing obligations of the Mortgagor including property maintenance, insurance, and payment obligations

9. Events of Default: Circumstances constituting default and consequences thereof

10. Enforcement Rights: Mortgagee's rights and remedies in case of default, including foreclosure procedures

11. Insurance: Requirements for property insurance and assignment of policies

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

13. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant courts' jurisdiction

14. Notices: Process and requirements for serving notices between parties

15. Execution: Signature blocks and execution requirements