Mortgage Law governs the mortgage, for the purpose of securing and collection of claims. A mortgage is a lien right on real estate, which empowers the creditor, in the event of the debtor’s failure to pay a matured debt, to request the collection of claim secured by the mortgage from the value of the real estate prior to the ordinary creditors and prior to junior mortgage creditors, regardless of who is in the possession of the real estate.
Mode of Institution and Types of Mortgage
A mortgage is instituted by registration in the competent real estate registry, on the basis of:
- Agreement or a judicial settlement (contractual mortgage)
- Mortgage deed (unilateral mortgage)
- Statute (statutory mortgage)
- Court decision (judicial mortgage).
The contractual mortgage rules apply mutatis mutandis to unilateral, statutory and judicial mortgage, unless otherwise provided by law. Continue reading Mortgage agreement