Agreement Of Mortgage Template for Pakistan

The Agreement Of Mortgage is a fundamental legal instrument in Pakistan's property financing landscape, essential for both commercial and residential property transactions. This document is primarily used when a property owner (mortgagor) seeks to secure a loan by creating a charge on their property in favor of a lender (mortgagee), typically a bank or financial institution. The agreement must conform to Pakistani legal requirements, particularly the Transfer of Property Act 1882 and various banking regulations. It comprehensively covers property details, loan terms, repayment schedules, default provisions, and enforcement mechanisms. The document is crucial for protecting the interests of both the lender and borrower, ensuring clear documentation of rights, obligations, and remedies available under Pakistani law.

1. Parties: Identification of the mortgagor and mortgagee with complete details including name, address, and legal status

2. Background: Context of the mortgage agreement including the property ownership and purpose of the mortgage

3. Definitions: Definitions of key terms used throughout the agreement

4. Creation of Mortgage: Express declaration of the mortgage and its type (e.g., simple mortgage, mortgage by deposit of title deeds)

5. Property Details: Brief description of the mortgaged property (with detailed description in Schedule)

6. Mortgage Amount and Interest: Principal amount, interest rate, and calculation method

7. Repayment Terms: Payment schedule, installment amounts, and duration of the mortgage

8. Security: Details of the security interest being created and property charges

9. Mortgagor's Representations: Warranties regarding property ownership, right to mortgage, and absence of encumbrances

10. Mortgagor's Covenants: Obligations including property maintenance, insurance, and payment of taxes

11. Events of Default: Circumstances constituting default and consequences

12. Mortgagee's Rights and Remedies: Rights of the mortgagee in case of default including power of sale

13. Insurance: Requirements for property insurance and assignment of policies

14. Governing Law: Specification of Pakistani law as governing law

15. Dispute Resolution: Mechanism for resolving disputes including jurisdiction