Mortgagedule and real estate lien
At PrestaFlex, we support you in securing your financing with solid legal tools. Understanding mortgagedule and the right of pledge is essential to optimize the security of your real estate loans. Here's what you need to know:
What are mortgages and liens?
When a mortgage is granted, the creditor requires a guarantee. This security takes the form of a mortgage, registered in the Land Register and recorded in a mortgage certificate. This legal instrument commits your property to covering the amount borrowed, or even more, in order to secure the loan.
Cédule hypothécaire, a key document
The cédule hypothécaire is the document that formalizes this lien. It contains all the essential information, such as
- The identity of the borrower and creditor,
- The amount of the pledge, which may exceed the actual debt to allow for future investments,
- Repayment terms (interest and amortization),
- The extent of the property lien.
Two types of mortgage note
There are two types of mortgage note:
- On paper: This is a physical document of title which, in addition to formalizing the lien, may be transferable depending on whether it is bearer or registered. However, this format presents the risk of loss or damage, sometimes necessitating costly re-issue.
- Register: Since 2012, the majority of cedules have been issued in digital form. They are entered directly in the Land Register, eliminating the risks associated with paper documents.
Cancelling a mortgage
Once the mortgage has been paid off in full, the cedule can be deleted from the Land Register. However, you can keep it for future financing. In fact, the amount of the registered pledge remains unchanged even after partial repayment, providing a credit line for new projects.
Why opt for conversion to register cedulas?
To avoid the inconveniences associated with the paper format - loss, deterioration and tedious administrative procedures - PrestaFlex recommends converting your paper mortgage schedule to a register version. This modern solution guarantees simplified and secure management of your real estate collateral.
PrestaFlex expertise at your service
The field of real estate lien law is a complex one. At PrestaFlex, our specialists offer you personalized support to :
- Understand and set up your real estate lien,
- Convert your documents into registered mortgage certificates,
- Optimize the management and cancellation of your collateral according to your financial needs.
Highlights
Cédules hypothécaires and liens are essential tools for securing your financing. By opting for PrestaFlex's solutions, you benefit from expert support to efficiently manage your real estate guarantees, secure your loans and prepare your future investments within an optimal legal framework.
To find out more or for personalized advice, please contact our specialists at PrestaFlex. We're here to help you turn your projects into lasting successes.
An article by Munur Aslan, Managing Director of PrestaFlex
