The Government has committed the Mortgage Bill to the Parliament for its approval.

The objective of the Bill is to fix the principles and rules, regulating the primary mortgage market and to create conditions for the development of the secondary mortgage market.

According to the Bill, the mortgage is designed to guarantee the implementation of liabilities and it is a subsidiary legal relation to a guaranteed liability and it has a limited validity term, if the Law or a respective agreement does not envisage any other conditions.

One or several real estate objects, which are registered under individual cadastre numbers, can be a mortgage subject. The document says that only the real estate, which is in free circulation on property rights or under economic or trust management and registered in the Real Estate Cadastre, can be a mortgage subject.

The Bill envisages that the market or replacement price of a real estate object must be fixed in an assessment report, made by an appraiser in accordance with the Law on Estimative Activities.

Any physical or juridical person can be a mortgage creditor. If one or several persons act as a mortgage creditor, they will have equal advantage, if the Law does not envisage otherwise.

Any physical or juridical person, who has a property right for a mortgage real estate and an owner, who has an alienation right for a given real estate object, can be a mortgage debtor.

A mortgage agreement must be made up in a written form and must be certified by a notary and the mortgage must be registered in the Real Estate Cadastre in accordance with the real estate cadastre legislation.

A mortgage is registered with a territorial cadastre body, which renders services for pawned real estate and the state mortgage registration must be accessible. Any person has the right to make acquaintance with the data, contained in the Real Estate Cadastre in accordance with the legislation in force. // Infotag



Publication date: 06 May 2008   

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