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The Holding Mortgage Agreement serves as a crucial legal instrument in Saudi Arabian real estate financing, providing security over real property while ensuring compliance with both civil law requirements and Islamic finance principles. This document is typically used when a financial institution requires security over real estate assets, whether for commercial financing or residential property transactions. The agreement must conform to the Real Estate Mortgage Law (Royal Decree No. M/49) and various SAMA regulations, while maintaining strict Shariah compliance. It includes comprehensive details about the mortgaged property, the secured obligations, enforcement mechanisms, and the rights and obligations of all parties involved. The document is essential for financial institutions, property developers, and investors engaging in secured real estate transactions in Saudi Arabia, providing a legally robust framework for mortgage arrangements while respecting local legal and religious requirements.

1. Parties: Identification of the mortgagor (property owner), mortgagee (financial institution), and any other relevant parties

2. Background: Context of the agreement, including reference to the underlying financial arrangement and purpose of the mortgage

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

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

5. Mortgage Terms: Core terms of the mortgage, including amount secured, duration, and nature of the security interest

6. Representations and Warranties: Statements and guarantees by the mortgagor regarding ownership, authority to mortgage, and property condition

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

8. Islamic Finance Compliance: Specific provisions ensuring the arrangement complies with Shariah principles

9. Registration and Perfection: Requirements and procedures for registering the mortgage with relevant authorities

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

11. Enforcement Rights: Rights and remedies of the mortgagee in case of default, compliant with Saudi law

12. Assignment and Transfer: Provisions regarding the transfer or assignment of rights under the mortgage

13. Notices: Communication procedures between parties

14. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and jurisdiction for disputes