Document background
The Mortgage Agreement is a fundamental document in Dutch property financing, required whenever real estate is used as security for a loan. This agreement must be executed as a notarial deed in compliance with Dutch law and registered with the Land Registry (Kadaster) to establish a valid mortgage right (hypotheekrecht). It serves multiple purposes: documenting the loan terms, creating security over the property, establishing the parties' rights and obligations, and ensuring compliance with Dutch financial regulations and consumer protection laws. The agreement is particularly important in the Netherlands due to the country's unique mortgage market features, including the possibility of interest-only mortgages and mortgage interest tax deduction (hypotheekrenteaftrek). The document must comply with the Dutch Civil Code, Financial Supervision Act, and European Mortgage Credit Directive requirements.
