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Real estate · Editor

Property Loan for Use Agreement

Version: Medium

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PROPERTY LOAN FOR USE AGREEMENT

In the city of Asunción, Republic of Paraguay, on [Date: e.g. 05/02/2026], appears on one side [Party A name: e.g. Juan Pérez], holder of ID No. [Party A ID: e.g. 1,234,567], domiciled at [Party A address: e.g. Asunción], hereinafter "PARTY A"; and on the other side [Party B name: e.g. María González], holder of ID/Tax ID No. [Party B ID/Tax ID: e.g. 80012345-6], domiciled at [Party B address: e.g. San Lorenzo], hereinafter "PARTY B". The parties state that they have sufficient capacity to bind themselves and agree to execute this private instrument, subject to the following clauses:

FIRST: PURPOSE

PARTY A and PARTY B agree to the free loan for use of the property identified as [Address: e.g. Barrio San Pablo, House No. 15], which the BORROWER receives for [Purpose: e.g. temporary housing]. This agreement shall be interpreted in good faith, according to its economic purpose and prudent Paraguayan legal practice.

SECOND: PRICE AND PAYMENT METHOD

As consideration, price, rent, contribution or economic acknowledgment, according to the nature of the act, the parties establish no rent or price is agreed, as this is a free-of-charge act; ordinary use expenses shall be borne by the BORROWER. Every payment must be documented by receipt, bank voucher or sufficient written record.

THIRD: TERM

The term or effectiveness shall be [Use term: e.g. 6 months], with an obligation of immediate return upon expiration or upon formal request. Any extension, suspension or amendment must be made in writing and physically or digitally signed by the parties.

FOURTH: OBLIGATIONS OF THE PARTIES

  • The BORROWER shall preserve the property with due care and shall be liable for damages caused by improper use.
  • The LENDER may inspect the property upon reasonable prior coordination.
  • Use may not be assigned to third parties without written authorization.

FIFTH: REPRESENTATIONS AND WARRANTIES

The parties declare that the stated information is true, that they act without fraud, mistake, violence or intimidation, and that they know the legal and economic scope of the obligations assumed. The free nature of this agreement does not create a lease relationship or retention right in favor of the BORROWER.

SIXTH: BREACH

Serious breach, unjustified default or lack of essential cooperation shall entitle the performing party to request performance, termination or compensation that may correspond, after notice by reliable means when the nature of the obligation permits it.

SEVENTH: ADDRESSES AND NOTICES

For all purposes of this agreement, the parties establish as special addresses those indicated in the appearance section, where written communications, emails and notices related to performance of the agreement shall be valid.

EIGHTH: JURISDICTION

For any dispute arising from this instrument, the parties shall seek an amicable solution. If disagreement persists, they submit to the competent ordinary courts of the Republic of Paraguay, without prejudice to mandatory rules applicable by subject matter or territory.

NINTH: ACCEPTANCE

Having read this document and as evidence of agreement, the parties sign two counterparts of the same tenor and for one single effect, at the place and date indicated above.

PARTY A signature: ___________________________

PARTY B signature: ___________________________

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