---

name: draft-mortgage
description: Use when drafting a mortgage, hypothec, or charge over real property as security for a loan or obligation. Covers all core elements — parties, property description, secured amount, payment schedule, default events, power of sale, insurance, and land-registry registration — with jurisdiction-specific guidance for UAE (Dubai/Abu Dhabi), KSA, Lebanon, DIFC/ADGM, France, and UK. Triggers on "mortgage", "hypothec", "charge over property", "real estate security", "رهن عقاري", or "nantissement immobilier" requests.
license: MIT
metadata:
id: draft.mortgage
category: draft
practice_area: real-estate
jurisdictions: [UAE, DIFC, ADGM, KSA, LB, EG, FR, UK]
priority: P1
intent: [mortgage, hypothec, charge on property, real estate security, رهن عقاري]
related: [draft-loan-agreement, draft-security-agreement, draft-property-sale-agreement, draft-guarantee]
source: Louis — HAQQ Legal AI (github.com/sboghossian/mini-claude-for-legal)
version: "1.0"

Mortgage / Hypothec / Charge on Real Property

When to use this

Use this skill when a borrower or property owner is granting security over real property to a lender or creditor as collateral for a loan, facility, or other obligation.

Terminology varies by jurisdiction:

• Mortgage — common-law term (UK, DIFC, ADGM, US)
• Hypothec / hypothèque — civil-law term (LB, FR, EG)
• رهن عقاري (Rahn 'Aqari) — Arabic / Gulf usage
• Charge — English law equivalent (legal mortgage or charge by way of legal mortgage)

Always pair this skill with [[draft-loan-agreement]] for the underlying credit obligation.

Required inputs

Input	Why it matters
Mortgagor (borrower / property owner)	Full identification; owner of the property
Mortgagee (lender / creditor)	Full identification; beneficiary of the security
Property description	Legal description, title deed / registration number, address, plot/parcel number
Secured amount	Principal amount + interest + fees + costs covered by the security
Interest rate / payment schedule	Cross-reference to the loan agreement
Default events	When can the lender enforce?
Governing law	Jurisdiction; real property security is typically governed by the lex situs (law of the place where the property is located)

Document structure

1. Parties and recitals

• Full identification of Mortgagor and Mortgagee
• Recital: the Mortgagor has borrowed / is borrowing X from the Mortgagee; to secure repayment, the Mortgagor grants this mortgage
• Cross-reference: the underlying Loan Agreement / Credit Agreement

2. Property description

Precise legal description is critical — the registration authority will not accept ambiguity:

• Title deed number
• Plot / parcel number and zone
• Building name, unit number, floor (for apartments / strata)
• Area in square meters
• Address
• Annex the title deed / land registry extract as an exhibit

3. Secured obligations

State precisely what the mortgage secures:

• Principal of the loan: AED/USD/SAR X
• Interest at the agreed rate
• Fees, costs, and expenses (including enforcement costs)
• All other obligations under the Loan Agreement
• Consider whether the mortgage secures future advances (securing a revolving facility requires specific language and may not be registrable in all jurisdictions without an amendment)

4. Grant of mortgage / hypothec

The granting clause — must be in the exact form required by local law:

• UAE / Dubai: "The Mortgagor hereby grants and creates a first-ranking mortgage (رهن) over the Property in favor of the Mortgagee..."
• LB: "Le constituant constitue par la présente une hypothèque en premier rang sur l'immeuble..."
• UK: "The Chargor charges [the Property] by way of legal mortgage in favor of [the Chargee]..."

5. Payment schedule and interest

Cross-reference the Loan Agreement for the repayment schedule. State:

• Monthly / quarterly / bullet payment dates
• Interest: rate, reset mechanism (if variable), payment date
• Late payment interest on overdue amounts

6. Representations and warranties

Mortgagor warrants:

• Good and marketable title to the Property; no prior encumbrances beyond disclosed ones
• No pending litigation, disputes, or claims affecting the Property
• All taxes and charges on the Property are paid up to date
• The Property is not subject to any tenancy that would impair enforcement
• The Mortgagor has authority to create the mortgage

7. Covenants (Mortgagor's obligations)

Standard ongoing obligations:

• Maintain the Property: keep in good repair; not permit deterioration
• Insurance: maintain adequate property insurance with the Mortgagee noted as loss payee; minimum coverage = replacement value or secured amount (whichever higher)
• Pay taxes and charges: all municipal rates, property taxes, service charges
• Not alienate: not sell, transfer, further encumber, or create any additional mortgage without Mortgagee's prior written consent
• Notify Mortgagee: of any compulsory purchase / expropriation proceedings; any material damage; any litigation affecting title

8. Events of default

Mortgage enforcement is triggered by:

• Non-payment under the Loan Agreement (after any applicable grace period)
• Breach of Loan Agreement covenants
• Breach of mortgage covenants (e.g., failure to insure, unauthorized transfer)
• Borrower insolvency
• Material damage to the Property beyond the insured value
• Compulsory purchase / expropriation without adequate compensation
• Any Event of Default under the Loan Agreement

9. Enforcement and remedies

Power of sale: on default, the Mortgagee may sell the Property and apply proceeds to the secured obligations. Note: in many MENA jurisdictions, power of sale requires court order or is subject to specific statutory procedures.

Possession: right to take possession of the Property on default (common-law jurisdictions: UK, DIFC; more restricted in civil-law jurisdictions).

Appointment of receiver: a court-appointed receiver may manage the Property and collect rents pending enforcement.

Application of proceeds: sale proceeds applied in order: (1) enforcement costs; (2) accrued interest; (3) principal; (4) other amounts due; (5) surplus to Mortgagor.

10. Registration

Registration with the relevant land authority is not just a formality — in most jurisdictions, the mortgage is not effective against third parties until registered. Failure to register can result in loss of priority.

See Jurisdictional notes below for registration mechanics.

11. Further assurances

Mortgagor agrees to execute any additional documents and take any steps required to perfect or maintain the mortgage security.

12. Governing law

Real property security is always governed by the lex situs (law of the place where the Property is situated). Even if the Loan Agreement is governed by a different law (e.g., English law for DIFC deals), the mortgage must comply with local land law.

Jurisdictional notes

Jurisdiction	Registration authority	Key rules
UAE — Dubai	Dubai Land Department (DLD)	Registration mandatory; DLD notarization and registration fee (typically 0.25% of secured amount); Islamic mortgage (رهن) for Sharia-compliant financing; first-ranking mortgage priority determined by registration date
UAE — Abu Dhabi	Abu Dhabi Department of Municipal Affairs (ADDED)	Tawtheeq registration; similar mechanics to Dubai
KSA	Real Estate Registry / Ministry of Justice	رهن عقاري; registration with the Notary Public (كاتب العدل); Islamic rahn structure preferred; interest-based mortgages restructured as ijara (lease-finance) or murabaha secured by property
Lebanon	Cadastre (Directorate General of Land Registry)	Hypothèque; registered by a notary at the Cadastre; priority determined by registration date; pre-registration (promesse d'hypothèque) also possible
Egypt	Real Estate Registry	Law 114/1946 on registration; hypothèque must be notarized and registered; Islamic mortgages also available
France	Service de la publicité foncière	Hypothèque conventionnelle; Code Civil Art. 2385+; notarized deed mandatory; registered at the Land Publicity Office
UK	HM Land Registry	Legal mortgage by charge (Law of Property Act 1925, s.85); registered at HMLR; non-registration is void against liquidator and purchasers
DIFC	DIFC Land Register (for DIFC properties)	DIFC Real Property Law No. 10 of 2018; registered charge at DIFC Land Register

MENA enforcement considerations

In UAE and KSA, enforcement of mortgage security by private sale without court involvement is generally not available — the Mortgagee must pursue enforcement through the courts (execution proceedings or specialized enforcement courts). This can be a slow process. Lenders often take additional security instruments (personal guarantees, pledges of operating accounts) to provide faster enforcement routes.

In Lebanon, a lender with a notarized and registered hypothec may apply for an ordre (court-supervised auction) through an expedited process, but the overall enforcement timeline can still be lengthy.

Insurance requirements

The mortgage instrument should specify:

• Policy type: all-risks property insurance (at minimum)
• Minimum sum insured: replacement value of the building
• The Mortgagee is noted as loss payee (insurance proceeds paid to Mortgagee, applied to secured obligations)
• Mortgagor to renew annually and provide evidence to Mortgagee
• If Mortgagor fails to insure, Mortgagee may insure at Mortgagor's cost

Common mistakes

• Incomplete or inaccurate property description — causes registration rejection
• Failure to register — mortgage ineffective against third parties and in enforcement
• Not cross-referencing all secured obligations — partial security coverage
• Not specifying who is the loss payee on the insurance — proceeds may go to the Mortgagor, not the lender
• Islamic finance transactions: characterizing ijara / murabaha as a conventional mortgage in the instrument — raises Sharia compliance concerns

Related skills

• [[draft-loan-agreement]]
• [[draft-security-agreement]]
• [[draft-property-sale-agreement]]
• [[draft-guarantee]]