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The Contract of Loan with Real Estate Mortgage is essential for secured lending transactions in the UAE where real estate serves as collateral. This document is commonly used in both commercial and residential property financing, combining lending and security arrangements in a single instrument. It must comply with UAE Federal Law No. 5 of 1985 (Civil Code), Federal Law No. 14 of 2008 (Mortgage Law), and relevant emirate-specific property regulations. The agreement is crucial for banks, financial institutions, and property investors, providing a legally enforceable mechanism for secured lending while protecting both lender and borrower interests. The document includes detailed provisions on loan terms, property details, payment obligations, default scenarios, and enforcement procedures, all structured to ensure compliance with UAE legal requirements and, where necessary, Sharia principles.

1. Parties: Identification of the Lender and Borrower with full legal names, addresses, and registration details if corporate entities

2. Background: Context of the loan agreement and mortgage, including purpose of the loan and brief description of the mortgaged property

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

4. Loan Terms: Principal amount, interest rate, tenure, disbursement conditions, and repayment schedule

5. Security Creation: Creation and terms of the mortgage over the real estate property, including property details and extent of the security

6. Borrower's Representations and Warranties: Statements about the Borrower's legal capacity, property ownership, and other material facts

7. Property Related Covenants: Obligations regarding property maintenance, insurance, and restrictions on dealing with the property

8. Financial Covenants: Borrower's ongoing financial obligations and maintenance of financial ratios if applicable

9. Events of Default: Circumstances constituting default and consequences thereof

10. Enforcement Rights: Lender's rights and remedies in case of default, including property sale procedures

11. Costs and Expenses: Allocation of costs related to the loan, mortgage registration, and enforcement

12. Notices: Process and addresses for serving notices between parties

13. Governing Law and Jurisdiction: Confirmation of UAE law as governing law and jurisdiction of UAE courts