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Hard Money Loan Agreement Template for Ireland

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Key Requirements PROMPT example:

Hard Money Loan Agreement

"I need a Hard Money Loan Agreement for a €500,000 loan secured against a commercial property in Dublin, with a 12% interest rate and 18-month term starting March 2025, including construction draw provisions as the property will undergo renovation."

Document background
The Hard Money Loan Agreement is designed for situations requiring rapid, short-term financing secured by real estate in Ireland. This document is commonly used in property development, investment, or situations where traditional financing options are not suitable or available. The agreement details loan terms, security arrangements, interest rates, repayment schedules, and default provisions, all compliant with Irish lending and property laws. It's particularly suitable for property developers, investors, or businesses needing quick access to capital, while providing lenders with robust security rights. The document includes comprehensive protections for both parties, incorporating requirements under Irish financial regulations, consumer protection laws, and property legislation. It's structured to facilitate efficient execution while ensuring all necessary legal and regulatory requirements are met for both private and institutional lenders.
Suggested Sections

1. Parties: Identifies the lender, borrower, and any guarantors with their full legal names and addresses

2. Background: Sets out the context of the loan agreement and the parties' intention to enter into the lending arrangement

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Loan Amount and Purpose: Specifies the principal amount of the loan and its intended use

5. Interest Rate and Fees: Details the interest rate, calculation method, and any associated fees

6. Security: Describes the property or assets being used as collateral for the loan

7. Repayment Terms: Outlines the repayment schedule, payment methods, and prepayment provisions

8. Conditions Precedent: Lists conditions that must be satisfied before the loan is advanced

9. Representations and Warranties: States the borrower's assertions about their legal capacity and the security property

10. Covenants: Sets out ongoing obligations of the borrower during the loan term

11. Events of Default: Defines circumstances constituting default and the lender's remedies

12. Enforcement Rights: Details the lender's rights and remedies upon default

13. Costs and Expenses: Allocates responsibility for legal fees, registration costs, and other expenses

14. Notices: Specifies how formal communications between parties should be made

15. Governing Law and Jurisdiction: Confirms Irish law governs the agreement and Irish courts have jurisdiction

Optional Sections

1. Guarantees: Required when there are third-party guarantors securing the loan obligations

2. Insurance Requirements: Detailed insurance obligations when specific insurance coverage is required for the security property

3. Property Management: Include when the lender requires specific maintenance or management of the security property

4. Cross-Collateralization: Used when multiple properties secure the loan or when securing multiple loans

5. Construction Draws: Required for loans involving property renovation or construction

6. Assignment and Transfer: Include when the lender wants the right to assign or transfer the loan

7. Personal Guarantee Provisions: Required when personal guarantees are part of the security structure

Suggested Schedules

1. Schedule 1 - Property Details: Detailed description of the security property including title information and encumbrances

2. Schedule 2 - Payment Schedule: Detailed repayment schedule including dates and amounts

3. Schedule 3 - Conditions Precedent Documents: List of required documents and conditions to be satisfied before drawdown

4. Schedule 4 - Form of Drawdown Notice: Template for the borrower to request loan disbursement

5. Schedule 5 - Insurance Requirements: Detailed specifications for required insurance coverage

6. Appendix A - Form of Security Documents: Templates for property charges and security documentation

7. Appendix B - Form of Guarantee: Template guarantee agreement for use by guarantors

8. Appendix C - Valuation Report Requirements: Specifications for property valuation reports

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 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

Real Estate

Private Lending

Property Development

Construction

Investment

Financial Services

Private Banking

Commercial Property

Residential Property

Relevant Teams

Legal

Finance

Risk Management

Compliance

Real Estate

Credit

Investment

Business Development

Operations

Property Management

Relevant Roles

Legal Counsel

Property Developer

Real Estate Investor

Finance Manager

Loan Officer

Mortgage Broker

Risk Manager

Compliance Officer

Real Estate Attorney

Investment Manager

Property Manager

Financial Advisor

Credit Analyst

Portfolio Manager

Business Development 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

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