Real Estate Security Agreement

• Secured Party (Lender):
  [Lender’s Name], a [business entity type] organized and existing under the laws of the state of [State], with its principal place of business located at [Lender’s Address].

• Debtor (Borrower):
  [Borrower’s Name], a [business entity type] organized and existing under the laws of the state of [State], with its principal place of business/residence at [Borrower’s Address].

Both parties, having the legal capacity to enter into this Agreement, agree as follows:

1. Grant of Security Interest

1.1. The Debtor grants the Secured Party a security interest in the following described real property (“Collateral”):

• Property Address: [Full Address of Property]
• Legal Description: [Insert full legal description from property deed]
• Parcel Number: [Parcel or Tax Identification Number]

1.2. This security interest secures the repayment of the following obligations (“Secured Obligations”):

• The loan amount of $[Loan Amount], plus any interest, fees, and expenses.
• Any additional costs incurred by the Lender for the preservation and protection of the property.

1.3. This Agreement serves as a lien on the Property, recorded with the appropriate government agency, until all Secured Obligations are satisfied.

2. Payment Terms

2.1. Loan Repayment – The Borrower agrees to repay the loan according to the terms set forth in the [Loan Agreement or Promissory Note], with a principal amount of $[Loan Amount] and an interest rate of [X]% per annum.

2.2. Late Payments – A late payment fee of $[Late Fee] shall be applied to any installment not paid within [X] days of the due date.

2.3. Prepayment – The Borrower [is/is not] allowed to prepay the loan without penalty. If prepayment penalties apply, they are specified in the Loan Agreement.

3. Borrower’s Covenants and Responsibilities

3.1. Maintenance of Property – The Borrower shall:

• Maintain the property in good condition and prevent waste or deterioration.
• Ensure compliance with zoning laws and building regulations.
• Not alter, demolish, or make major modifications to the property without prior written consent.

3.2. Insurance Requirements – The Borrower must maintain:

• Property Insurance – Covering the full replacement value of the real estate, naming the Lender as a loss payee.
• Liability Insurance – With a minimum coverage of $[Amount], as required by the Lender.

3.3. Taxes and Liens – The Borrower agrees to:

• Pay all property taxes, assessments, and other charges on time.
• Avoid any secondary liens, encumbrances, or judgments that affect the Lender’s interest.

4. Default and Remedies

4.1. Events of Default – The following shall constitute a default under this Agreement:

• Failure to make loan payments as scheduled.
• Failure to maintain property insurance or pay taxes.
• Unauthorized sale, lease, or transfer of the property.
• Any action that reduces the value of the Lender’s security interest.

4.2. Lender’s Remedies – Upon default, the Lender may:

• Declare the entire loan balance immediately due and payable.
• Initiate foreclosure proceedings in accordance with state law.
• Take possession of the property, if permitted.
• Seek legal recourse to recover unpaid amounts and damages.

5. Governing Law

5.1. This Agreement shall be governed by and construed under the laws of the state of [State].

5.2. Any legal disputes shall be resolved in the courts of [County, State].

6. Miscellaneous Provisions

6.1. Recording – The Lender may record this Agreement with the appropriate county recorder’s office to secure its lien.

6.2. Assignment – The Lender may assign its rights under this Agreement to another party without the Borrower’s consent.

6.3. Amendments – Any modifications must be in writing and signed by both parties.

6.4. Severability – If any provision is deemed invalid, the remaining provisions shall remain in full force and effect.

6.5. Entire Agreement – This Agreement represents the entire understanding between the parties and supersedes all prior agreements.

7. Notices

All notices required under this Agreement shall be in writing and sent via certified mail, email, or delivered in person to the addresses listed below:

• Lender:
  [Lender’s Name]
  [Lender’s Address]
  [Email Address]

• Borrower:
  [Borrower’s Name]
  [Borrower’s Address]
  [Email Address]

8. Signatures

IN WITNESS WHEREOF, the parties have executed this Real Estate Security Agreement as of the date first written above.

Lender (Secured Party):
By: ___________________________
Title: __________________________
Date: __________________________

Borrower (Debtor):
By: ___________________________
Title: __________________________
Date: __________________________