Hypothecary Application!

 From a legal point of view, mortgages are the designation of two legal subjects, that is, a credit agreement entered into in accordance with the Commercial Code, and ultimately a contract in accordance with the Civil Code, secured by lien to the real estate. real estate qatar

Lien's right

Lien rights may be characterized to entitle the lien creditor – in this case the bank that provides the loan - to claim satisfaction of something committed in the event that the debtor does not correctly and/or in good time meet the secured debt. The parties' rights and obligations arise from the Gift Contract, which usually clearly stipulates the rights and duties of all the parties. It should be noted that the right of lien is linked to the legal life of the guaranteed debt. This means that the origin and duration of the lien right are inseparable from the secured debt. The lien right has two functions, namely the function of the securing function – the debtor is encouraged to remove the lien right burden through payment of the obligation and the disbursement function — the lien creditor is satisfied by the pledge — from the sale proceeds, if the debt is not fulfilled by the debtor.

Pledge Agreement

The fundamental requirement is that the contract be fulfilled in writing unless the right of lien is invalid.

The Pledge Contract must clarify the subject of lien rights. The parties are the lien creditor – the credit bank and the debtor – the mortgager. i.e., the person who has some real estate to which the pledge may be made and who intends to draw credit and purchase property at the same time.

A third party can make a pledge in the event that the purchaser has no real estate available.

Moreover, a mortgage owner can assign the pledged property to a third party that then becomes a mortgage owner. The debtor still has to pay the bank's debt.

Pledge

It must be pointed out that the cooperative cannot be pledged.

No legal regulation sets out the proportion between the value of the debt and the value of the pledged real estate. It is then up to the banks to check the value of the pledged property. Banks therefore need an assessment report from a recognized expert.

In the event of loss of value of the property and insufficient debt security, the lien creditor has a right to require the debtor's additional security. If this isn't the case, the portion of debt not secured by lien is due.

Origin of Lien Law

For a lien right to be valid, it must be registered in the real estate register. The parties to the Pledge Agreement, namely the lien creditor and the mortgager, present the proposed right of lien. Because a credit bank insists on proper security of debts, i.e. the credit provided, the evidence of the submission of the promise contract to the cadastre office is usually required to be provided to the bank before provision of the credit can be made. This minimizes the risk of the banks by securing their debt.

In the pledge agreement the mortgage is often bound to provide the lien creditor with the greatest possible cooperation in order to remove any obstacle to the entry of the right to lien (eventually to conclude a new and correct pledge contract). In such cases, the lien creditor may be protected from the debtor by ensuring that the credit provided is due immediately.