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The House Loan Contract serves as the primary legal instrument for home financing in Saudi Arabia, structured to comply with both civil law and Islamic Sharia principles. It is used when individuals seek financing for residential property purchase, ensuring the arrangement follows approved Islamic financing structures such as Murabaha or Ijara. The document details all aspects of the financing arrangement, including property specifications, payment terms, security arrangements, and party obligations. It incorporates requirements from the Saudi Real Estate Mortgage Law, Finance Laws and Implementing Regulations by SAMA, and Islamic banking principles. This contract type is essential for financial institutions providing home financing in Saudi Arabia, as it protects all parties' interests while maintaining Sharia compliance throughout the financing period.

1. Parties: Identification of the financial institution (lender) and the borrower with full legal names and details

2. Background: Context of the agreement, including property details and purpose of financing

3. Definitions: Key terms used throughout the agreement, including Islamic finance terminology

4. Islamic Financing Structure: Details of the Sharia-compliant financing structure being used (e.g., Murabaha or Ijara)

5. Facility Amount and Purpose: The approved financing amount and specified use for house purchase

6. Payment Terms: Schedule of payments, profit rate, and payment mechanisms

7. Security Arrangements: Details of mortgage and any additional security required

8. Conditions Precedent: Conditions that must be satisfied before the facility becomes effective

9. Representations and Warranties: Statements of fact by the borrower about their situation and the property

10. Covenants: Ongoing obligations of the borrower during the term of the facility

11. Events of Default: Circumstances that would constitute a breach and their consequences

12. Property Requirements: Obligations regarding property maintenance and insurance

13. Termination Rights: Circumstances and procedures for early termination

14. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution process