What Are The Characteristics Of Real Estate Mortgage?

1. property. Real estate mortgage is set up for the repayment of secured debt, and its attribution is obvious.

The real estate mortgage contract is subordinate to the main contract, that is, the occurrence and existence of the mortgage contract must be based on the existence of the main contract.

The subordination of mortgage is mainly manifested in three aspects: the subordination of the establishment, the subordination and the subordinate nature of the punishment. The establishment of the mortgage is based on the existence of the corresponding creditor's rights.

The principal contract is terminated and the mortgage contract terminated.

The mortgage can not be separated from the main contract, so that it can be left alone or separately.

Neither the mortgage nor the right to pfer the main contract can be retained only by leaving the main contract.

2. priority compensation. Legislation on the real estate mortgage guarantee system is usually taken as a foothold. For example, the 192nd provision of the Soviet civil code promulgated in 1964 stipulates: "because of the mortgage, when the debtor fails to perform the obligation secured by the mortgage, the creditor (the mortgagee) has the right to get the priority from the value of the mortgaged property before other creditors".

The general provisions of the civil law and the guarantee law also highlight the priority of compensation in order to meet the claims relief requirements.

In some real estate mortgage laws and regulations, the regulations are more clear.

3. complementarity. Only when the debtor fails to fulfill his contractual obligations, does it require the guarantor to perform his duty of guaranty.

Therefore, the liability of the real estate mortgagor is simple. If the debtor fulfil his contractual obligations, the mortgagor will not be liable.

4. specificity includes two meanings: first, the amount of collateral is certain, and the value of collateral is generally consistent with the secured creditor's rights.

(Guarantee Law) stipulates: "the creditor's rights guaranteed by the mortgagor shall not exceed the value of his mortgaged property."

If the value of the collateral is less than the secured creditor's rights, the creditor may not be able to make full payment.

Under such circumstances, the mortgagee may ask the mortgagor to repay the part of the mortgaged property as a common creditor's right.

But it undoubtedly increases the risk of the mortgages' compensation.

Two, the mortgage is specific.

The property used as a guarantee is not specific, and the collateral must be specific.

The specificity of mortgages is an inevitable requirement of exclusivity of real rights. In this regard, all countries also require public notice registration system to further make the mortgaged property through publicity registration.

5., no pfer of possession. Real estate mortgage is not pferred. The mortgagor can continue to exercise the right to occupy, use, earn and dispose of mortgaged property.

This is a notable feature that distinguishes it from other guarantees.

Without pferring possession, it is beneficial for the mortgagor to increase the ability to repay debts through the use and income of the mortgaged property, which is beneficial for the mortgagee to avoid the inconvenience of using, earning, maintaining and safekeeping due to direct possession, so as to lighten the burden of the mortgagee.

In view of this, mortgage becomes a guarantee method that both mortgagee and mortgagor are willing to accept.