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The Contract Of Loan With Real Estate Mortgage is a fundamental document in South African secured lending practice, commonly used when providing financing secured against real property. This document type is essential for both residential and commercial property transactions where the lender requires security in the form of a mortgage bond over immovable property. It ensures compliance with South African banking, property, and credit laws, including the National Credit Act and Deeds Registries Act. The agreement serves multiple purposes: it documents the loan terms, creates the security interest, sets out the parties' rights and obligations, and provides enforcement mechanisms. It's particularly relevant in property financing, development projects, and refinancing situations where real estate serves as collateral.

1. Parties: Identification of the Lender and Borrower with full legal names, registration/identity numbers, and addresses

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

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Loan Amount and Purpose: Specification of the loan amount, purpose, and conditions precedent to disbursement

5. Interest and Charges: Interest rate, calculation method, and any applicable fees or charges

6. Repayment Terms: Repayment schedule, payment methods, and prepayment provisions

7. Security Arrangements: Details of the mortgage bond, property description, and security registration requirements

8. Borrower's Representations and Warranties: Declarations by the borrower regarding their capacity, property ownership, and other material facts

9. Borrower's Obligations: Ongoing obligations including property maintenance, insurance, and compliance with laws

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

11. Lender's Rights and Remedies: Rights of the lender in case of default, including foreclosure provisions

12. General Provisions: Standard clauses including notices, amendments, governing law, and jurisdiction