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The Owner Financing Mortgage Contract is utilized in situations where traditional bank financing is either not preferred or not available, enabling property sellers to act as direct lenders to buyers in Australia. This document type is particularly relevant in private property sales, development projects, or situations requiring flexible financing arrangements. The contract must comply with the National Consumer Credit Protection Act 2009, state property laws, and other relevant Australian legislation. It typically includes comprehensive terms covering loan amount, interest rates, payment schedules, security arrangements, default provisions, and property maintenance requirements. The document ensures both the seller-lender's security interest in the property and the buyer-borrower's rights are properly protected, while establishing clear obligations and remedies for all parties involved.

1. Parties: Identifies and provides full details of the Mortgagor (Borrower) and Mortgagee (Owner-Financier)

2. Background: Explains the context of the agreement, including the property purchase and owner financing arrangement

3. Definitions: Defines key terms used throughout the agreement

4. Loan Amount and Terms: Specifies the principal amount, interest rate, loan term, and payment schedule

5. Security Interest: Details the property being mortgaged and the nature of the security interest

6. Mortgagor's Covenants: Lists the borrower's obligations including property maintenance, insurance, and tax payments

7. Representations and Warranties: Sets out the declarations and guarantees made by both parties

8. Payment Terms: Detailed payment provisions including method, timing, and application of payments

9. Default and Enforcement: Defines events of default and the mortgagee's enforcement rights

10. Insurance Requirements: Specifies required insurance coverage and related obligations

11. Property Maintenance and Use: Details requirements for property upkeep and permitted uses

12. Assignment and Transfer: Rules regarding transfer of rights under the mortgage

13. Notices: Specifies how formal communications between parties must be made

14. Governing Law: Confirms Australian law governance and jurisdiction

15. Execution: Formal signing section with necessary witnessing provisions