Real Estate Mortgage Form Template for Malaysia

The Real Estate Mortgage Form is a crucial document in Malaysian property financing transactions, used to secure loans or financing facilities against real property. It must comply with the National Land Code 1965 and related legislation, including the Financial Services Act 2013 or Islamic Financial Services Act 2013, depending on the financing structure. The document is essential for both residential and commercial property transactions, requiring registration with the relevant land registry to create a valid charge. It includes comprehensive details about the property, parties involved, financing terms, covenants, and enforcement mechanisms. The form can be adapted for various scenarios including individual or corporate Chargors, multiple properties, and different financing structures, while maintaining compliance with Malaysian legal requirements and banking regulations.

1. Parties: Identification of the Chargor (property owner/borrower) and Chargee (bank/financial institution), including all relevant registration details

2. Background: Brief recitals explaining the context of the mortgage, including reference to the facility agreement or loan arrangement

3. Definitions: Comprehensive definitions of terms used throughout the document, including financial terms, property descriptions, and legal terminology

4. Property Details: Full legal description of the charged property including title details, lot number, and address as per the land title

5. Creation of Charge: Express provisions creating the legal charge/mortgage over the property

6. Loan/Facility Details: Details of the loan/facility secured by the charge, including amount, interest rate, and tenure

7. Chargor's Covenants: Obligations of the property owner including maintenance, insurance, payment of outgoings, and restrictions on dealing with the property

8. Events of Default: Comprehensive list of circumstances constituting default and triggering enforcement rights

9. Chargee's Rights and Remedies: Rights of the bank/financial institution upon default, including power of sale and appointment of receivers

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

11. Representations and Warranties: Chargor's declarations regarding their authority, property ownership, and absence of encumbrances

12. Execution: Formal execution blocks complying with National Land Code requirements