The mortgage is a guarantee right ; it is used, for example, when a mortgage is lit (it is called a mortgage loan) or a loan, to guarantee the bank that has granted the loan to recover its credit.
In the case of an unpaid loan (but only under certain conditions) the bank can assert its right of guarantee on the property , asking the judge to put it for sale. The proceeds from the auctioning of the mortgaged property will then be turned over to the bank as compensation for their credit.
A mortgage is not forever, since once registered you can either cancel or extinguish .
In the first case the mortgage is permanently canceled, along with all the formalities registered in the real estate registers. With the extinction, however, the mortgage ceases to be a guarantee right, but remains registered in the real estate register. We can therefore say that there is no cancellation without extinction , but not the other way around.
But in which cases can the mortgage be canceled? When is the extinction expected? We will answer these questions in the rest of the article, clarifying the terms and conditions for requesting the cancellation of a mortgage registered on a property.
EXTINCTION AND CANCELLATION OF THE PACKAGE
- Mortgage types
- Extinction of the mortgage
- Cancellation of the mortgage
The mortgage is a real right of guarantee granted by the debtor or by a third party on an asset, to guarantee a credit and gives the creditor the power to expropriate the asset and to be satisfied with preference on the price obtained.
It can be established on registered real estate or movable property and for its constitution requires a specific formality, registration in public registers; it can be voluntary when it is a guarantee of the payment of a debt (as in the case of a loan with the bank to guarantee the repayment of the sum of money borrowed) or judicial when it is decreed by the judge in case of failure to pay a debt .
Then there is the legal mortgage that occurs when the buyer pays only a part of the agreed price, or when the succession has succession the herds leave pending payments.
Registration with the property registers has the effect of informing third parties of the establishment of the guarantee right.
Extinction of the mortgage
As we saw at the beginning of our guide, once the extinction has been completed, the mortgage becomes unusable , although it is still formally registered in the real estate register.
The bank can no longer claim the right to guarantee the forced sale of the property, but any person could still view it in the real estate register simply asking for a mortgage .
The extinction of the mortgage occurs when one of the following situations occurs:
- cancellation of the mortgage by the creditor;
- extinction of the obligation for which the mortgage registration was made (for example, the balance of the loan);
- destruction of the mortgaged property;
- waiver by the creditor;
- by decision of the Court;
- the expiry of the term or condition to which the mortgage has been limited;
- prescription, that is to say after 20 years without anyone having requested renewal.