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The Property Loan Agreement is essential for financial institutions and individuals engaging in property-secured lending transactions in Pakistan. This document is used when a borrower seeks financing for property purchase, construction, or renovation, or when using existing property as collateral for a loan. The agreement must comply with Pakistani banking regulations, including both conventional and Islamic banking frameworks, and requires proper registration under the Registration Act 1908. It typically includes comprehensive details about the property, loan terms, security arrangements, repayment schedule, and enforcement mechanisms. The document should be carefully structured to ensure enforceability under Pakistani law while protecting both lender and borrower interests.

1. Parties: Identification of the Lender and Borrower with complete details including CNIC numbers, addresses and contact information

2. Background: Context of the loan agreement, including brief description of the property and purpose of the loan

3. Definitions: Definitions of key terms used throughout the agreement, including technical banking terms and property-related terminology

4. Loan Amount and Purpose: Detailed specification of the loan amount, currency, and permitted use of funds

5. Property Details: Comprehensive description of the property being used as security, including legal title details and location

6. Interest Rate and Charges: Specification of interest rate (or profit rate for Islamic financing), calculation method, and other applicable charges

7. Repayment Terms: Payment schedule, installment amounts, and repayment mechanism

8. Security and Mortgage: Details of the property mortgage and any additional security arrangements

9. Borrower's Representations: Warranties and representations regarding legal capacity, property ownership, and financial status

10. Borrower's Covenants: Ongoing obligations including property maintenance, insurance, and financial reporting

11. Events of Default: Circumstances constituting default and consequences thereof

12. Lender's Rights and Remedies: Actions available to the lender in case of default or breach

13. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and relevant jurisdiction for disputes