Understanding the Legal Mortgage: Nature, Conditions, and Procedures

L’legal mortgage is a legal instrument that approves a creditor to guarantee the payment of his debt by real estate. She is registered with land register. It gives the creditor the right to seize the mortgaged property in the event of non-payment of the debt.

Nature of the legal hypothec

L’legal mortgage relates to a Property and it is enforceable against third parties. It is provided for by the Civil Code. It is granted to creditors depending on the nature of the debt. The legal hypothec aims to secure creditors by giving them a guarantee on the payment of their debts. There are several types of legal hypothec:

• the legal construction hypothec is granted to builders and renovators. It guarantees the payment of their debts arising from the work they carry out;
• the legal hypothec of suretyship is granted to sureties to guarantee the payment of the debts of their debtors;
• the legal co-ownership hypothec is granted to the co-owners to certify the payment of co-ownership charges and contributions;
• the legal hypothec of mortgage loan is granted to credit institutions to ensure the repayment of mortgage loans, etc.

Conditions and criteria

Pour file a legal mortgage, the debt secured by the mortgage must be due. It must be due and payable immediately. In principle, the consent of debtor is necessary to file a legal hypothec. However, there are exceptions to this rule. This is the case for legal construction and co-ownership mortgages. L’mortgage deposit document must be an authentic act. A notary or lawyer is responsible for drafting it.

Procedures and formalities

The creditor must prepare the following documents:

• the authentic deed of mortgage deposit. It must contain the name and address of the creditor and the debtor. He also mentions the description of well mortgagedthe amount of the debt guarantee and the date of deposit of the mortgage;
• a copy of the secured debt and a copy of thedeed of the mortgaged property. They will be certified as compliant.

Documents are submitted to the land registry office of the place where the mortgaged property is located. The creditor must pay the costs of filing the documents and the costs of publishing the legal hypothec.

Filing a legal mortgage is also done online. Platforms offer online services for those who want to secure their financial interests. Hypotek, for example, provides a simplified approach for individuals and professionals. Through clear interfaces and automated tools, users fill in the required information. They upload the necessary documents and follow the online filing process.