Loan Assumption Agreement Template

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Sample

Loan Assumption Agreement Template

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Loan Assumption Agreement Template (1)
Between:
[Name of the Current Borrower]
[Current Borrower’s ID]
[Current Borrower’s Address]
[Current Borrower’s Phone]
[Current Borrower’s Email]
And:
[Name of the New Borrower]
[New Borrower’s ID]
[New Borrower’s Address]
Introduction:
This document serves to formalize the assumption of a loan originally made to the Current Borrower on [Loan Date], whereby the New Borrower agrees to assume the obligations under the original loan agreement.
Clause 1: Loan Details
The loan being assumed is detailed as follows: [Loan Amount], [Interest Rate], [Maturity Date], and any other relevant terms which include: [Specify terms].
Clause 2: Assumption of Obligations
The New Borrower agrees to assume and be bound by all terms, conditions, and obligations set forth in the original loan agreement as of [Effective Date of Assumption].
Clause 3: Release of Liability
Upon execution of this agreement, the Current Borrower shall be released from any future obligations relating to the loan, and the New Borrower shall take on full responsibility for repayment.
Clause 4: Representations and Warranties
Each party represents and warrants that they have the authority to enter into this agreement and that entering into this agreement does not violate any other agreements.
Clause 5: Governing Law
This agreement shall be governed by and construed in accordance with the laws of [Jurisdiction].
Signed in [City], [Date].
Sincerely,
[Signature of the Current Borrower]
[Name of the Current Borrower]
[Signature of the New Borrower]
[Name of the New Borrower]
Loan Assumption Agreement Template (2)
Between:
[Name of the Current Borrower]
[Current Borrower’s ID]
[Current Borrower’s Address]
[Current Borrower’s Phone]
[Current Borrower’s Email]
And:
[Name of the New Borrower]
[New Borrower’s ID]
[New Borrower’s Address]
Introduction:
This agreement establishes the terms under which the New Borrower will assume the loan with details as follows: [Loan Amount], [Interest Rate], [Maturity Date].
Clause 1: Background
The Current Borrower originally obtained the loan on [Loan Date], and wishes to transfer the responsibility for repayment to the New Borrower.
Clause 2: Terms of Assumption
The New Borrower hereby assumes all obligations and liabilities under the original loan agreement effective as of [Effective Date].
Clause 3: Liability and Default
The New Borrower understands that failure to fulfill the loan obligations may result in actions taken by the lender, which include legal action or default fees.
Clause 4: Indemnification
The New Borrower shall indemnify the Current Borrower against any claims, losses, or damages that may arise from the loan after the assumption becomes effective.
Clause 5: Entire Agreement
This document represents the entire agreement between the parties and supersedes all prior agreements or understandings.
Signed in [City], [Date].
Sincerely,
[Signature of the Current Borrower]
[Name of the Current Borrower]
[Signature of the New Borrower]
[Name of the New Borrower]

Form

Please complete the form below to create the Loan Assumption Agreement Template. All fields must be filled out to ensure a clear and complete agreement. We provide examples to guide you through each step.

Loan Assumption Agreement Template

1. Original Loan Information



2. New Borrower Information


3. Current Borrower Information


4. Agreement Details



5. Terms of the Loan Assumption

6. Conditions Precedent

7. Fees and Costs

8. Rights and Obligations

9. Representations and Warranties

10. Signatures and Acceptance

11. Declaration and Signatures





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Loan Assumption Agreement Template

Printable | Editable Form




Loan Assumption Agreement Template