Skip to main content

e-Sign with PandaDoc

Real Estate Loan Agreement

Image 1

Created by:

​[Lender.FirstName][Lender.LastName]​

​[Lender.Company]​

Prepared for:

​[Borrower.FirstName][Borrower.LastName]

​[Borrower.Company]​

Use this real estate loan agreement template when you need to take out a loan for a property. Tailored for property transactions, this template provides a robust framework to outline terms, conditions, and obligations for both lenders and borrowers. Edit and send online or download PDF to pave the way for seamless and secure real estate loan agreements

​

This Real Estate Loan Agreement (the "Agreement") is entered into between [Lender.FirstName][Lender.LastName], residing at [Lender.StreetAddress][Lender.City][Lender.State][Lender.PostalCode], hereinafter referred to as the "Lender," and [Borrower.FirstName][Borrower.LastName], residing at [Borrower.StreetAddress][Borrower.City][Borrower.State][Borrower.PostalCode], hereinafter referred to as the "Borrower."

Loan Details

Commercial and residential loans have notable differences in their terms. A typical residential loan can span up to 30 years, while a commercial loan can be as short as five years (or less) to a maximum of 20 years. Also, it’s common for the amortization period of a commercial loan to be longer than the loan’s term, while a residential loan’s amortization period is equal to the loan term.

  • Loan Amount: (Enter the Loan Amount Borrowed)

  • Interest Rate: (Enter the Interest Rate on the Loan in a Decimal Percentage Format per Annum)

  • Loan Term: (Enter the Duration of the Loan in Months or Years as applicable)

  • Repayment Terms: (Enter the Amount and Frequency of Payment(s) for the Loan, Including the Start Date for Repayment. This Section Should Also Outline Any Late Fees or Penalties for Missed Payments)

  • Accepted Payment Methods: (Insert all the Acceptable Payment Methods)

Collateral

In the event of a default, the lender has the right to seize the collateral provided by the borrower as security for the loan. This collateral can then be sold by the lender to fulfill the outstanding debt. In the event it doesn’t cover the outstanding amount, the borrower is responsible for paying the outstanding amount within a reasonable time frame.

Property Description

The Borrower agrees to pledge the following (Insert the Item That Will Be Used as Collateral for the Loan) as collateral for the loan in the case that the Lender defaults:

  • Collateral Item Description: (Provide a Detailed Description of the Collateral Item With All Relevant Details as Required)

Valuation of Collateral

The Borrower acknowledges that an independent appraisal of the collateral item has been conducted, and its fair market value has been determined at (Enter the Appraised Value of the Collateral Item).

​

Insurance

Mortgage insurance is an important aspect of the home loan process. It serves to protect the lender in case the borrower is unable to fulfill their mortgage obligations. If you choose to make a down payment of less than 20%, the lender requires you to pay for private mortgage insurance. It helps safeguard the lender’s investment in case of default.

The Borrower shall maintain adequate insurance coverage on the collateral item for the duration of the loan term, naming the Lender as an additional insured party. The Borrower agrees to provide proof of insurance upon request.

Default

According to federal law, lenders are required to wait for a period of 120 days before starting the foreclosure process. During this waiting period, it’s advisable to communicate with your lender and explore possible alternatives, such as loan modification or refinancing.

In the event of a default by the Borrower, the Lender shall have the right to take legal action to recover the outstanding amount of the loan, as well as additional accrued interest, fees, and costs. Default can be caused by the failure to make payments in a timely manner, breach of any other terms outlined in the loan agreement, or any event that may jeopardize the value or security of the collateral.

Legal Fees

In the event that the Borrower defaults, the Borrower agrees they will pay reasonable attorneys’ fees that may not exceed a sum equal to the maximum usury rate in the State of (State) of the outstanding balance owing on the Loan as outlined in this Real Estate Loan Agreement. Plus, any reasonable expenses made by the Lender as they exercise their rights and due remedies in court in the State of (State).

Governing Law and Jurisdiction

The terms and conditions of this Agreement will be regulated and interpreted based on the laws of the State of (State) as required.

Repayment Completion

It’s important to get a Closing Protection Letter (CPL) upon repaying the loan in full. This letter is designed to protect the Lender and the Buyer against any potential damage, loss, fraud, theft, or any other issues that may arise due to negligence by any involved party. This protection is in place during the title clearance process when title insurance is obtained.

The loan shall be closed upon full and complete repayment of the loan amount, as well as all accrued interest, fees, and costs. A Closing Protection Letter (CPL) is issued by the Lender, stating that the loan has been paid in full.

​

Entire Agreement

This Real Estate Loan Agreement is the complete and only Agreement between the Lender and Borrower with respect to the loan. All the terms and conditions that have been agreed upon between the two Parties supersede any previous agreements, whether made verbally or in writing. If any changes are to be made to this Agreement, they must be in writing and signed by both the Lender and the Borrower in order for them to be valid.

​[Borrower.Company]​

​

Signature
MM / DD / YYYY

​[Borrower.FirstName][Borrower.LastName]​

​[Lender.Company]​

​

Signature
MM / DD / YYYY

​[Lender.FirstName][Lender.LastName]​

Useful resources

Featured Templates
Sales Proposals
NDA Agreements
Operating Agreements
Service Agreements
Sales Documents
Marketing Proposals
Rental and Lease Agreements
Quote Templates
Business Proposals
Agreement Templates
Purchase Agreements
Contract Templates

Disclaimer

Materials (e.g. templates, educational articles, blog posts and informational content), made available through PandaDoc, including via any integrations, connectors, extensions, plugins, or third-party AI platforms (e.g. ChatGPT, Claude, or similar tools) are for general information purposes only and are provided "as is." These materials do not constitute legal, regulatory, or compliance advice and should not be construed as such. It is your responsibility to ensure materials meet your specific legal requirements. Consult a qualified attorney licensed in your jurisdiction before relying on these materials. PandaDoc disclaims all warranties, express or implied, including fitness for a particular purpose or non-infringement.

Related templates

Business Loan Agreement Template

Business Loan Agreement Template

Customize this business loan agreement template with all your business requirements that’ll meet all standard legal issues as needed with a few simple steps.

Business Loan Application Form

Business Loan Application Form

Build business loan application forms quickly and easily with PandaDoc’s drag-and-drop template. Customize your forms in minutes and streamline your financial organization’s document workflow.

Family Loan Agreement Template

Family Loan Agreement Template

If a family member needs to borrow money, use our customizable family loan agreement template to get it in writing.

Auto Loan Application Form

Auto Loan Application Form

Use PandaDoc to efficiently create and complete auto loan application forms across departments in minimal time.

available

Real Estate Loan Agreement

Used 4,885 times

AI BadgeAI assistant included

If you’re looking for a real estate loan agreement, check out our editable and downloadable template that’s perfect for your next property deal.

Use this template — free
Use this template — free

Care to rate this template?

Your rating will help others.

Rate this template

Thanks for your rate!

Template preview
e-Sign with PandaDoc
PandaDoc
TemplatesAgreements
Close
PandaDoc
TemplatesAgreements
Close