Joint Mortgage Agreement Template for New Zealand

The Joint Mortgage Agreement is essential when two or more parties wish to jointly borrow funds secured against real property in New Zealand. This document is commonly used by couples, business partners, or family members who share responsibility for a mortgage. The agreement must comply with New Zealand's Property Law Act 2007, Credit Contracts and Consumer Finance Act 2003, and other relevant legislation. It outlines the joint and several liability of the borrowers, details the security arrangements, specifies payment obligations, and includes provisions for default scenarios. The Joint Mortgage Agreement is particularly important as it clearly defines each party's rights and responsibilities, ensuring all borrowers understand their obligations and the consequences of default.

1. Parties: Identifies all parties to the agreement, including full legal names, addresses, and roles (e.g., Mortgagors, Mortgagee)

2. Background: Sets out the context of the agreement, including the purpose of the loan and the property being mortgaged

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes rules for interpretation

4. Loan Details: Specifies the loan amount, interest rate, term, and repayment schedule

5. Security: Details of the property being offered as security, including its legal description and title reference

6. Joint and Several Liability: Establishes that all mortgagors are jointly and severally liable for the mortgage obligations

7. Covenants: The promises and obligations of the mortgagors, including property maintenance, insurance, and payment obligations

8. Events of Default: Defines what constitutes a default and the consequences thereof

9. Enforcement Rights: The mortgagee's rights and remedies in case of default

10. Insurance Requirements: Specifies required insurance coverage for the property

11. Costs and Expenses: Allocation of costs related to the mortgage, including establishment fees and ongoing charges

12. Notices: How formal communications between parties should be made and delivered

13. General Provisions: Standard contract clauses including governing law, assignment, and amendments

14. Execution: Formal signing section including witness requirements