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A Mortgage Agreement is a legal contract where a borrower pledges real property to a lender as security for a loan in the Philippines. This binding document gives the lender the right to claim the mortgaged property if the borrower fails to repay the loan according to the agreed terms.

Under Philippine civil law, the agreement must specify the mortgaged property's details, loan amount, interest rate, and payment terms. The document needs proper notarization and registration with the Registry of Deeds to be fully enforceable. Many Filipinos use mortgage agreements to finance home purchases, business expansions, or secure business loans from local banks and lending institutions.

Use a Mortgage Agreement when borrowing substantial funds in the Philippines and offering real estate as collateral. This applies most commonly when buying property through bank financing, securing business loans with land or buildings, or refinancing existing mortgages with better terms.

The timing is crucial - execute the Mortgage Agreement before receiving loan funds, and register it immediately with the Registry of Deeds. Filipino property owners also need this document when using their real estate to guarantee third-party loans, expand business operations, or consolidate multiple properties under a single mortgage. Having it properly drafted and registered protects both lender and borrower rights under Philippine banking regulations.

• Mortgage Contract Agreement: Standard bank-to-borrower agreement, most commonly used for residential and commercial property loans in the Philippines
• Private Mortgage Contract: Used between private individuals or entities, offering more flexible terms than traditional bank mortgages
• Seller Financed Mortgage Contract: Property seller directly finances the buyer's purchase, bypassing traditional lenders
• Mortgage Assumption Contract: Allows a buyer to take over the seller's existing mortgage terms and obligations
• Agreement For Sale Of Mortgaged Property: Specifically handles the sale of property with an existing mortgage

• Banks and Financial Institutions: Act as primary lenders, draft standard mortgage agreements, and hold the rights to the mortgaged property as security
• Property Buyers: Sign as borrowers, pledge their property as collateral, and commit to regular mortgage payments
• Real Estate Developers: Often partner with banks to offer in-house financing through mortgage agreements
• Notary Public: Authenticates the agreement and ensures proper execution under Philippine law
• Registry of Deeds Officials: Record and register the mortgage agreement to establish legal rights
• Legal Counsel: Review terms, ensure compliance with banking regulations, and protect client interests

• Property Details: Gather complete property description, boundaries, title number, and tax declaration details
• Loan Information: Document the principal amount, interest rate, payment terms, and amortization schedule
• Party Information: Collect valid IDs, contact details, and authority documents for all signatories
• Title Search: Verify property ownership and check for existing liens or encumbrances
• Property Valuation: Obtain recent appraisal report from licensed Philippine appraiser
• Insurance Details: Specify required property insurance coverage and beneficiary information
• Registration Requirements: Prepare documentary stamps and registration fees for the Registry of Deeds

• Identification of Parties: Complete legal names, addresses, and capacities of mortgagor and mortgagee
• Property Description: Detailed technical description, boundaries, and title certificate number
• Loan Terms: Principal amount, interest rate, payment schedule, and default provisions
• Rights and Obligations: Maintenance requirements, insurance obligations, and permitted property use
• Default Remedies: Foreclosure procedures, grace periods, and acceleration clauses
• Insurance Requirements: Coverage types, beneficiary designations, and claim procedures
• Notarial Acknowledgment: Space for notarization as required by Philippine Civil Code
• Signature Block: Proper format for all parties, witnesses, and notary public

A Mortgage Agreement differs significantly from an Asset Purchase Agreement in the Philippine legal context. While both involve property transactions, their core purposes and effects are distinct. A Mortgage Agreement creates a security interest in property while allowing the owner to retain possession, but an Asset Purchase Agreement transfers complete ownership of assets.

• Purpose and Effect: Mortgage Agreements secure a loan by creating a lien on property; Asset Purchase Agreements permanently transfer ownership rights
• Duration: Mortgages remain active until loan repayment; Asset purchases complete the transaction immediately
• Rights Retained: Mortgagors keep possession and use rights; Asset sellers relinquish all control
• Payment Structure: Mortgages involve regular payments over time; Asset purchases typically require full payment upon closing
• Legal Remedies: Mortgages allow foreclosure for default; Asset purchases focus on warranties and representations