When it comes to purchasing a property in the Philippines, a mortgage agreement is an essential document that must be carefully crafted and reviewed by both the borrower and the lender. A mortgage agreement is a legal document that outlines the terms and conditions of a loan for a property purchase, including the amount borrowed, interest rate, repayment schedule, and other important details. In this article, we will provide a sample mortgage agreement that can be used as a template for borrowers and lenders in the Philippines.
Mortgage Agreement Sample Philippines
This mortgage agreement (hereinafter referred to as the “Agreement”) is made and entered into on [date] by and between [borrower`s name and address] (hereinafter referred to as the “Borrower”) and [lender`s name and address] (hereinafter referred to as the “Lender”).
1. Property Description
The Borrower hereby mortgages the property located at [property address] (hereinafter referred to as the “Property”) to the Lender as security for the loan provided by the Lender.
2. Loan Amount
The Lender agrees to lend the Borrower the sum of [loan amount] (hereinafter referred to as the “Loan”) for the purpose of financing the purchase of the Property.
3. Interest Rate
The Loan shall bear interest at the rate of [interest rate] per annum, calculated and payable monthly in arrears.
4. Repayment Schedule
The Borrower shall repay the Loan in [number of years] years, in [number of monthly payments] equal monthly payments of [payment amount]. The first payment shall be due on [date], and subsequent payments shall be due on the [day of the month] of each month thereafter.
5. Default
In the event that the Borrower fails to make any payment due under this Agreement, the Lender shall have the right to declare the entire outstanding balance of the Loan immediately due and payable. The Borrower shall also be responsible for any costs incurred by the Lender in enforcing this Agreement.
6. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the Republic of the Philippines.
7. Severability
If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
8. Entire Agreement
This Agreement constitutes the entire agreement between the parties and supersedes any and all prior agreements and understandings, whether written or oral, relating to the subject matter herein.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
Borrower`s Signature: _______________________
Lender`s Signature: _______________________
Conclusion
A well-crafted mortgage agreement can provide both the borrower and the lender with peace of mind during the property purchase process. By using the sample mortgage agreement provided in this article, borrowers and lenders in the Philippines can ensure that their agreement is comprehensive, fair, and legally sound. Remember to always seek the advice of a legal professional before signing any mortgage agreement.