Ƶ

Mortgage Subordination Agreement Template for Saudi Arabia

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Mortgage Subordination Agreement

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Mortgage Subordination Agreement

"I need a Mortgage Subordination Agreement for a commercial property in Riyadh, where ABC Islamic Bank (first mortgagee) will subordinate their existing mortgage to XYZ Finance Company's new Shariah-compliant financing of SAR 10 million."

Document background
A Mortgage Subordination Agreement is essential in Saudi Arabian real estate financing where multiple mortgages exist on a single property. This document is typically used when a property owner has multiple financing arrangements and needs to establish or modify the priority order of different mortgages. It's particularly relevant in refinancing scenarios or when additional financing is required while maintaining existing mortgages. The agreement must comply with Saudi Arabia's Real Estate Finance Law and Shariah principles, requiring careful structuring to avoid prohibited interest (riba) while maintaining effective security arrangements. The document includes crucial details about the mortgaged property, existing encumbrances, and the specific terms of subordination, ensuring all parties' rights are clearly defined within the Islamic finance framework.
Suggested Sections

1. Parties: Identification of all parties including Senior Mortgagee, Subordinated Mortgagee, and Property Owner

2. Background: Context of existing mortgages, their registration details, and reason for subordination

3. Definitions: Key terms including Senior Mortgage, Subordinated Mortgage, Property, and Security Interest

4. Subordination: Core provisions establishing the subordination of rights and priorities between mortgages

5. Representations and Warranties: Statements by parties regarding their authority, ownership, and existing encumbrances

6. Covenants: Ongoing obligations of parties, including maintenance of priority status and restrictions on modifications

7. Notice Requirements: Obligations to notify other parties of defaults, enforcement actions, or material changes

8. Shariah Compliance: Declarations and provisions ensuring compliance with Islamic financial principles

9. Term and Termination: Duration of the subordination arrangement and circumstances for termination

10. Governing Law and Jurisdiction: Specification of Saudi law application and jurisdiction for disputes

11. Execution: Formal execution requirements including witness provisions and attestations

Optional Sections

1. Further Assurance: Additional commitments to execute documents or take actions to give effect to the agreement, included when complex property or multiple jurisdictions involved

2. Payment Provisions: Specific arrangements regarding payment priorities and waterfall, included when payment mechanics need to be explicitly detailed

3. Property Management: Provisions regarding property maintenance and management, included when property requires specific oversight

4. Insurance Requirements: Specific insurance obligations and claim priorities, included when property has significant insurance requirements

5. Assignment and Transfer: Provisions governing the transfer of mortgage rights, included when parties anticipate potential transfers

6. Dispute Resolution: Alternative dispute resolution mechanisms, included when parties prefer specific resolution procedures

Suggested Schedules

1. Property Description: Detailed legal description of the mortgaged property including title deed details

2. Existing Mortgages: Details of all existing mortgages including registration numbers and dates

3. Form of Notices: Template forms for required notices under the agreement

4. Payment Priority Schedule: Detailed breakdown of payment priorities if multiple obligations exist

5. Required Consents: Copies of necessary third-party consents and regulatory approvals

6. Power of Attorney: Form of power of attorney if required for enforcement or registration purposes

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

Relevant legal definitions








































Clauses




























Relevant Industries

Banking and Financial Services

Real Estate

Construction and Development

Islamic Finance

Commercial Property

Residential Property

Industrial Property

Healthcare Facilities

Retail Property

Hospitality

Relevant Teams

Legal

Real Estate Finance

Islamic Banking

Credit Risk

Compliance

Property Management

Corporate Banking

Investment

Operations

Documentation

Relevant Roles

Real Estate Finance Manager

Islamic Banking Compliance Officer

Property Finance Director

Legal Counsel

Mortgage Officer

Real Estate Portfolio Manager

Credit Risk Manager

Property Finance Analyst

Shariah Compliance Manager

Real Estate Investment Manager

Senior Loan Officer

Corporate Banking Manager

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

Find the exact document you need

Mortgage Subordination Agreement

A Saudi Arabian law-governed agreement establishing priority arrangements between multiple mortgage holders, compliant with Shariah principles.

find out more

Land Mortgage Agreement

A Shariah-compliant legal document creating a security interest over real property in Saudi Arabia, establishing rights and obligations between mortgagor and mortgagee under Saudi law.

find out more

Real Estate Mortgage Agreement

A Shariah-compliant real estate mortgage agreement under Saudi Arabian law, establishing security interest over property while ensuring compliance with local regulations and Islamic finance principles.

find out more

Mortgage Loan Origination Agreement

Saudi Arabian mortgage loan origination agreement establishing terms for Sharia-compliant property financing and loan processing procedures.

find out more

Mortgage Loan Extension Agreement

A Saudi Arabian law-governed agreement that extends an existing Shariah-compliant mortgage loan term while maintaining original security arrangements and regulatory compliance.

find out more

Mortgage Deferral Agreement

A Shariah-compliant agreement for deferring mortgage payments in Saudi Arabia, modifying existing mortgage terms while maintaining compliance with Saudi banking regulations.

find out more

Holding Mortgage Agreement

A Saudi Arabian law-governed agreement establishing a Shariah-compliant mortgage over real property, creating security interests while maintaining compliance with local regulations and Islamic finance principles.

find out more

Owner Financing Mortgage Contract

A Sharia-compliant owner financing mortgage agreement under Saudi Arabian law, facilitating property purchase through direct seller financing arrangements.

find out more

Mortgage Loan Sale Agreement

A Sharia-compliant agreement for the sale and transfer of mortgage loans between financial institutions in Saudi Arabia, governed by Saudi law and SAMA regulations.

find out more

Seller Financed Mortgage Contract

A Saudi Arabian law-governed agreement for seller-financed property purchase, structured to comply with both Saudi regulations and Sharia principles.

find out more

Contract Of Real Estate Mortgage

A Sharia-compliant real estate mortgage agreement under Saudi Arabian law, creating security over property to secure financial obligations.

find out more

Mortgage Purchase Contract

A Saudi Arabian law-governed agreement combining property purchase terms with Shariah-compliant mortgage financing arrangements.

find out more

Mortgage Assignment Agreement

A Shariah-compliant agreement under Saudi Arabian law transferring mortgage rights and obligations from one mortgagee to another, including all associated security interests and registration requirements.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our for more details and real-time security updates.