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The House Loan Agreement is a crucial document used in Saudi Arabia when individuals seek Sharia-compliant financing for residential property purchases. This agreement is specifically designed to comply with Saudi Arabian law and Islamic finance principles, prohibiting conventional interest-based lending. It details the financing structure (typically Murabaha or Ijara), property specifications, payment terms, and security arrangements. The document must adhere to regulations set by the Saudi Arabian Monetary Authority (SAMA) and the Real Estate Finance Law of 2012. It's essential for both financial institutions and borrowers, providing legal protection while ensuring religious compliance. The agreement includes comprehensive details about property valuation, payment schedules, borrower obligations, and default procedures, all within the framework of Saudi law and Sharia principles.

1. Parties: Identification of the Islamic finance provider and the borrower(s), including full legal names and addresses

2. Background: Context of the agreement, including the property details and confirmation of Sharia compliance

3. Definitions: Key terms used throughout the agreement, including Islamic finance-specific terminology

4. Islamic Financing Structure: Detailed explanation of the Islamic financing method used (e.g., Murabaha or Ijara) and its compliance with Sharia principles

5. Property Details: Comprehensive description of the property being financed, including legal title information

6. Financing Amount and Payment Terms: Total financing amount, payment schedule, and profit rate (avoiding conventional interest terminology)

7. Security and Mortgage: Details of the mortgage registration and security arrangements under Saudi law

8. Borrower's Representations and Warranties: Statements and guarantees made by the borrower regarding their eligibility and capacity

9. Lender's Representations and Warranties: Statements and guarantees made by the finance provider regarding Sharia compliance and regulatory authority

10. Conditions Precedent: Prerequisites that must be satisfied before the financing becomes effective

11. Covenants: Ongoing obligations of the borrower throughout the financing period

12. Events of Default: Circumstances that constitute default and their consequences

13. Termination: Conditions and procedures for early termination or full repayment

14. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution procedures