Mortgage Purchase Contract Template for Nigeria

The Mortgage Purchase Contract is a crucial document in Nigerian financial and real estate transactions, used when one financial institution seeks to acquire mortgage rights from another. This document is essential for portfolio transfers, debt restructuring, or strategic acquisitions in the Nigerian mortgage market. It must comply with strict regulatory requirements, including the Land Use Act 1978, Federal Mortgage Bank of Nigeria regulations, and state-specific property laws. The contract typically includes detailed provisions for purchase price calculation, transfer mechanics, regulatory approvals, and borrower notifications. It's particularly relevant in situations involving mortgage portfolio sales, bank acquisitions, or refinancing arrangements, and requires careful consideration of both federal and state-level requirements for property transactions in Nigeria.

1. Parties: Identification of the seller, purchaser, and any other relevant parties including their full legal names, addresses, and registration details if corporate entities

2. Background: Context of the transaction, including brief description of the property and existing mortgage arrangement

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

4. Sale and Purchase: Core terms of the purchase including the mortgage rights being transferred and purchase price

5. Purchase Price and Payment Terms: Detailed breakdown of the purchase price, payment schedule, and payment mechanisms

6. Conditions Precedent: Conditions that must be satisfied before completion of the purchase

7. Completion: Details of the completion process, timing, and requirements

8. Seller's Warranties: Warranties regarding the mortgage, underlying property, and seller's authority

9. Purchaser's Warranties: Warranties regarding the purchaser's authority and ability to complete the purchase

10. Transfer of Rights and Obligations: Provisions governing the transfer of mortgage rights and related obligations

11. Notice to Mortgagor: Requirements and process for notifying the original mortgagor of the transfer

12. Representations: Legal representations made by both parties

13. Covenants: Ongoing obligations of both parties

14. Default and Remedies: Consequences of default and available remedies

15. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for disputes

16. Notices: Process and requirements for serving notices under the agreement

17. Execution: Signature blocks and execution requirements