Characteristics of Mortgage Rights

Mortgage rights as a strong land guarantee institution that is able to provide legal certainty for the parties, has the following characteristics:

  • giving a preferred or prior position to the mortgage holder, namely certain creditors;
  • can be used as collateral for debts that will exist and can guarantee more than one debt;
  • always follows the object being guaranteed in whosoever's hands the object is (droit de suite/zaaksgevolg), thus the mortgage right will not end even if the object of the mortgage right is transferred to another party for any reason whatsoever;
  • fulfilling the principle of specialty with the making of the Deed of Granting Mortgage Rights (hereinafter referred to as “APHT”) and the principle of publicity which is applied at the time of registration of mortgage rights at the Land Office, so that it can bind third parties and provide legal certainty to interested parties;
  • easy and certain execution of mortgage rights

Subjects of Mortgage Rights

1. Grantor of Mortgage Rights

The grantor of mortgage rights is an individual or legal entity that has the authority to carry out legal actions against the object of the mortgage right in question. The authority to carry out these legal actions must exist in the grantor of mortgage rights at the time the mortgage right is registered.

2. Recipient/Holder of Mortgage Rights

The recipient of mortgage rights is an individual or legal entity that is positioned as a creditor or creditor in the principal agreement, who becomes the Holder of Mortgage Rights after the mortgage right is registered.