Document background
The Loan Agreement And Mortgage is a fundamental document in Hong Kong's property financing landscape, used when a lender provides financing secured against real property. This document serves dual purposes: it details the loan facility terms while creating a legal charge over the property as security. Typically used in both residential and commercial property transactions, it must comply with Hong Kong's legal requirements, particularly the Conveyancing and Property Ordinance and Money Lenders Ordinance. The document is essential for protecting the lender's interests while providing clear terms for the borrower, including loan amount, interest rates, repayment schedule, and consequences of default. It requires registration with the Hong Kong Land Registry to perfect the security interest.
