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The Mortgage Contract Agreement is a fundamental legal document used in Saudi Arabia for securing property financing transactions. It is essential for both residential and commercial property purchases where financing is required. The agreement must comply with Saudi Arabia's Real Estate Finance Law and Shariah principles, making it distinct from conventional mortgages in other jurisdictions. This document establishes the security interest over the property, details the financing structure, and outlines the rights and obligations of all parties involved. It includes crucial elements such as property details, payment terms, default provisions, and enforcement mechanisms, all structured to ensure compliance with Islamic finance principles that prohibit interest-based transactions. The agreement is particularly important given Saudi Arabia's growing real estate market and the increasing demand for Shariah-compliant property financing solutions.

1. Parties: Identification of the mortgagor (borrower), mortgagee (lender), and any guarantors, including full legal names and contact details

2. Background: Context of the agreement, including the purpose of the mortgage and confirmation of Shariah compliance

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

4. Property Details: Comprehensive description of the mortgaged property, including location, boundaries, and title details

5. Financing Terms: Details of the financing amount, profit rate, payment schedule, and tenure of the mortgage

6. Security Creation: Legal provisions creating the mortgage over the property and registration requirements

7. Representations and Warranties: Statements of fact and assurances given by the mortgagor regarding their capacity, property ownership, and other material matters

8. Covenants: Ongoing obligations of the mortgagor, including property maintenance, insurance, and payment obligations

9. Events of Default: Circumstances constituting default and the mortgagee's rights and remedies in such events

10. Enforcement Rights: Mortgagee's rights and procedures for enforcing the security in accordance with Saudi law

11. Islamic Finance Provisions: Specific provisions ensuring Shariah compliance, including prohibition of riba and uncertain transactions

12. Notices: Procedures for giving notices between parties

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

14. Execution: Signature blocks and execution formalities