Mortgage

Imagine that you want to buy real estate, but you don't have enough money to pay it in full. You are going to lender or a bank that agrees to give you the money in exchange for the guarantee (mortgage) of  the real estate that you will buy. In return, you will have pay back money that you loaned plus some interests during the specific period. If you fail to do that for a certain reason, that agreement gives the lender the authority to keep your real estate. 

A mortgage is therefore a lien that allows the person or bank that lends money the right to the property if there is a default.

How is the mortgage created?

Mortgage is created by registration in the competent register, based on: 

• Contract or court settlement (contractual mortgage), 
• Pledge statements,
• Law,
• Court decisions.

A mortgage can be formed for:

• Land (agricultural, forest, built and unbuilt construction land),
• Residential and commercial buildings,
• Apartments in buildings,
• Family houses,
• Cottages,
• Business facilities,
• Garages,
• Other buildings and facilities for which the borrower has clearly defined ownership.

A mortgage can be based on the entire property (entire business building or apartment) or part of the property (one half or third of the house, building or the property). The main requirement is that property must be registered in the land registry, The lender should verify the legal ownership of the property and the market value. 

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