Private Mortgage Contract Template for Pakistan

The Private Mortgage Contract is a crucial document used in Pakistan's real estate financing landscape when an individual seeks to secure a loan against property from a private lender rather than a traditional banking institution. This document is particularly relevant in situations where borrowers prefer private financing arrangements or require more flexible terms than those offered by conventional banks. The contract must adhere to Pakistan's legal framework, including the Transfer of Property Act 1882 and relevant Islamic finance principles where applicable. It typically includes comprehensive details about the property being mortgaged, loan terms, repayment schedules, and enforcement mechanisms. The document's structure accommodates both conventional and Islamic financing options, reflecting Pakistan's dual banking system, and must be properly registered with relevant authorities as per the Registration Act 1908.

1. Parties: Identification of the mortgagor (borrower) and mortgagee (lender) with complete details

2. Background: Context of the mortgage agreement, including property acquisition purpose

3. Definitions: Key terms used throughout the agreement defined for clarity

4. Loan Amount and Purpose: Specification of the principal amount and intended use of funds

5. Property Details: Legal description and details of the mortgaged property

6. Security Creation: Terms creating the mortgage charge over the property

7. Interest Rate and Payments: Interest rate, payment schedule, and calculation method

8. Repayment Terms: Schedule of repayments, payment methods, and prepayment provisions

9. Borrower's Covenants: Obligations of the borrower including property maintenance and insurance

10. Lender's Rights: Rights of the lender including inspection and enforcement rights

11. Events of Default: Circumstances constituting default and consequences

12. Remedies: Lender's rights and remedies in case of default

13. Representations and Warranties: Declarations about property ownership, authority to contract, etc.

14. Governing Law and Jurisdiction: Specification of Pakistani law and relevant jurisdiction

15. Notices: Process for serving notices between parties

16. Execution: Signature blocks and attestation requirements