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Mortgage Assumption Agreement for United Arab Emirates

Mortgage Assumption Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that facilitates the transfer of mortgage obligations from an original borrower to a new assuming party. The agreement ensures compliance with UAE Federal Mortgage Law and relevant emirate-specific regulations, including Dubai and Abu Dhabi property laws. It details the terms and conditions of the mortgage assumption, including property details, payment obligations, and necessary approvals from the lender. The document incorporates provisions for both conventional and Sharia-compliant mortgages, addressing the unique requirements of the UAE market while ensuring proper registration with relevant authorities.

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What is a Mortgage Assumption Agreement?

The Mortgage Assumption Agreement Template is a crucial document used in the United Arab Emirates when an existing mortgage needs to be transferred from one party to another. This typically occurs during property sales where the buyer wishes to take over the seller's existing mortgage rather than obtaining new financing. The template ensures compliance with UAE Federal Law No. 14 of 2008 (Mortgage Law) and relevant emirate-specific regulations, while also accommodating both conventional and Islamic financing structures. The agreement covers essential elements including property details, original mortgage terms, assumption conditions, lender's consent, and registration requirements. It's particularly relevant in the UAE's dynamic real estate market where mortgage assumptions can offer advantages in terms of time and cost efficiency. The document must be carefully structured to protect all parties' interests while meeting regulatory requirements, including those of the UAE Central Bank and local property registration authorities.

What sections should be included in a Mortgage Assumption Agreement?

1. Parties: Identifies the Original Borrower (Assignor), the Assuming Party (Assignee), and the Lender/Bank

2. Background: Describes the original mortgage, the property details, and the intention to transfer the mortgage obligations

3. Definitions: Defines key terms used throughout the agreement, including Property, Original Mortgage, Assumption Date, etc.

4. Assumption of Mortgage: Core section detailing the transfer of mortgage obligations and responsibilities from Assignor to Assignee

5. Original Borrower's Representations: Warranties regarding the current status of the mortgage, property, and any existing defaults

6. Assuming Party's Representations: Warranties regarding financial capacity, eligibility, and commitment to assume the mortgage

7. Lender's Consent: Terms of the lender's approval of the assumption and any conditions attached

8. Transfer of Rights and Obligations: Detailed provisions regarding the transfer of all mortgage-related rights and responsibilities

9. Payment Terms: Details of ongoing payment obligations, including amounts, dates, and payment methods

10. Property Registration: Requirements and procedures for updating property registration records

11. Governing Law and Jurisdiction: Specifies UAE law as governing law and relevant courts for dispute resolution

What sections are optional to include in a Mortgage Assumption Agreement?

1. Islamic Finance Compliance: Required when the original mortgage is Sharia-compliant, detailing compliance with Islamic finance principles

2. Broker/Agent Provisions: Include when a real estate broker or agent is involved in facilitating the assumption

3. Property Management: Required when there are specific property management obligations being transferred

4. Insurance Requirements: Optional section detailing specific insurance requirements if different from original mortgage

5. Co-borrower Provisions: Include when there are co-borrowers in the original mortgage or assumption

6. Release of Original Borrower: Optional section specifying conditions for release of original borrower from obligations

What schedules should be included in a Mortgage Assumption Agreement?

1. Schedule 1 - Property Details: Detailed description of the mortgaged property, including title deed information

2. Schedule 2 - Original Mortgage Terms: Summary of key terms from the original mortgage agreement

3. Schedule 3 - Payment Schedule: Detailed breakdown of remaining payments and payment schedule

4. Schedule 4 - Required Documents: List of documents required for mortgage assumption and property registration

5. Appendix A - Lender's Consent Form: Standard form for lender's formal consent to the assumption

6. Appendix B - Property Registration Forms: Required forms for updating property registration records

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Loan Agreement

Cost

Free to use
Relevant legal definitions




































Clauses


































Relevant Industries

Banking & Financial Services

Real Estate

Islamic Finance

Property Development

Mortgage Lending

Real Estate Investment

Legal Services

Property Management

Relevant Teams

Legal

Real Estate

Mortgage Operations

Compliance

Risk Management

Islamic Banking

Property Registration

Document Management

Customer Service

Credit Assessment

Relevant Roles

Mortgage Officer

Real Estate Lawyer

Property Manager

Bank Manager

Real Estate Agent

Mortgage Broker

Legal Counsel

Compliance Officer

Islamic Finance Specialist

Property Registration Officer

Real Estate Transaction Manager

Risk Assessment Manager

Banking Operations Manager

Document Control Specialist

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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