Real Estate Pledge Agreement

Pledge in civil law - a way to ensure fulfillment of obligations in the form of property and other objects of civil rights (with the exception of money) owned by the mortgagor and guaranteeing repayment of a loan or other civil obligations. A pledge, as well as a guarantee, is an accessory (additional) obligation in relation to the main secured obligation, which in particular entails the following consequences: if the main obligation is invalid, the pledge obligation also becomes invalid, the assignment of rights under the main obligation entails the assignment of rights under collateral, etc. The pledge of real estate is called a mortgage.

SECURITY PARTIES - pledger and pledge holder.

Any property, including property and property rights (claims), may be the subject of a pledge, while the value of the subject of a pledge may, by agreement of the parties, include remuneration, indemnification for delays in performance, forfeit, costs of maintaining the pledged property and reimbursement of collection costs. Things that have been withdrawn from circulation, claims that are inextricably linked by the identity of the pledge holder, such as claims for alimony, compensation for harm caused to life or health cannot act as a pledged item.

The legislation provides for the right of the pledgor to provide as collateral things that at the time of conclusion of the contract are not his property, but which will belong to the right of ownership or economic management in the future.

In this section you can familiarize yourself with the real estate pledge agreement.