You have definitely heard a lot about mortgage, mortgage loan (mortgage credit), agreement regarding loan and mortgage issues, etc, but are you aware of compulsory mortgage?
Enforcement on immovable property is carried out by compulsory mortgage registration, compulsory auction or sequestration (compulsory management of property).
"Compulsoriness" implies that the registration in Public Registry is carried out on the basis of a creditor application and for the enforcement goals only. Thus, it is not identified as mortgage, as far as the mortgage is a result of the bilateral willpower of both sides via registration in Public Registry.
A compulsory mortgage starts with registration. Immovable property also represents the guarantee to the costs of compulsory mortgage registration. A debtor has to pay that costs. Several items of immovable property of a debtor can be compulsorily mortgaged.
Take into consideration that a compulsory mortgage is applied only in case of non-ensured statement and only once by one and the same creditor.
In case an enforcement document is abolished by the enforcement decision or the enforcement is declared unauthorized, then the compulsory mortgage is applied towards the owner of the plot of land. The rule is valid for those cases when a debtor meets a creditor demands.
