Mortgage Deed Template for Malaysia

The Mortgage Deed is a fundamental legal instrument in Malaysian property financing, essential for securing loans against real estate. It is commonly used when individuals or businesses require financing to purchase property or when using existing property as collateral for other financial facilities. This document must comply with the National Land Code 1965, the Contracts Act 1950, and other relevant Malaysian legislation. The Mortgage Deed typically includes detailed property descriptions, loan terms, parties' obligations, default provisions, and enforcement mechanisms. It is particularly important in the Malaysian context due to specific legal requirements for property charges and the need for registration with the land office. The document serves both residential and commercial purposes and can be adapted for conventional or Islamic financing structures.

1. Parties: Identifies the mortgagor (borrower/chargor) and mortgagee (lender/chargee) with full names, identification numbers, and addresses

2. Background: Recitals explaining the context of the mortgage, including details of the property and the facility agreement

3. Definitions: Defines key terms used throughout the deed

4. Creation of Charge: The operative clause creating the legal charge/mortgage over the property

5. Property Details: Detailed description of the charged property including title particulars

6. Facility Amount and Terms: Details of the loan/facility amount, interest rate, and repayment terms

7. Covenants by the Chargor: The borrower's promises regarding property maintenance, insurance, payment of outgoings, etc.

8. Events of Default: Circumstances that constitute default and trigger enforcement rights

9. Remedies of the Chargee: Rights and powers of the lender upon default, including power of sale

10. Insurance: Requirements for insuring the property and assignment of insurance policies

11. Assignment and Transfer: Provisions regarding the lender's right to assign or transfer the mortgage

12. Notices: How formal notices must be given between parties

13. Governing Law: Confirms Malaysian law as governing law and jurisdiction