Federal Law "On Mortgage (Pledge of Real Estate)" No. 102-ФЗ of 16.07.1998

The right to leave the property on bail is now used by many Russians. However, not all studied the Federal Law "On Mortgage", which directly regulates one of the areas of lending. This article will provide a brief description of the main points of this bill.

On the mortgage

What is a mortgage contract? The current law "On Mortgage" says that one party to the transaction should be a mortgagee, that is, a creditor, and the other party - the pledger, or simply the debtor. The mortgagor is provided with a mortgage, because of which he has one important duty: to satisfy the monetary claims of the pledgee who provided the debtor with real estate.

The Law on Mortgage says that real estate can include enterprises, buildings, apartments, land and some other elements. The turnover of these types of property should be regulated by the relevant law.

The requirements that are provided by the mortgage are not so great: it is payment to the creditor of the interest due to him for using the loan. As a rule, the mortgage agreement establishes a firm amount of basic and additional claims of the pledgee. Any such agreement must strictly comply with the law "On Mortgage".

On the subject of a mortgage

What property can act as a legitimate subject of a mortgage? According to the law under consideration, it is worth mentioning here:

• Land plots whose area is larger than or equal to the minimum established size;
• Buildings and enterprises used for entrepreneurial activities;
• Apartment houses and apartments with isolated rooms;
• Garages, garden houses and villas;
• Air, sea or space vessels;
• Car places.

The Law on Mortgage says that the subject of the mortgage is also the items pledged together with the main thing. In this case, parts of the property of indivisible things can not act as the subject of the contract.

Conclusion of the contract

An important point in the entire process of mortgage lending is the competent conclusion of the contract. It must occur in accordance with the norms of the Russian Civil Code. The content of the contract should reflect the following:

• Directly the subject of the mortgage, its essence, size and evaluation characteristic;
• The name and location of the item (for the exact identification of the thing to be pledged);
• An accurate description of the obligation, which is provided by the mortgage agreement, as well as the grounds for the occurrence and the term of the contract;
• The procedure and the necessary conditions for determining the amount, if the amount is determined in the future;
• Periods of payments and their amounts, if the subject of mortgage lending will be implemented in parts;
• An indication of the identification of the mortgagee's rights to the mortgage.

And what exactly is called a mortgage? What is this document and what does it have to do with the mortgage agreement? The answers to all these questions are contained in the third chapter of the Law "On Mortgage" (FZ No. 102).

About mortgage

Mortgage is a security of a nominal type. Due to this document, the following rights of its owner are subject to certification:

• The right to pledge property that is the subject of a mortgage agreement;
• The right to fulfill monetary obligations under the mortgage.

Other forms of identification, other than a mortgage, have not yet been established by law. In this case, the obliged persons, according to the mortgage, are both the pledger and the debtor. The mortgagor always deals with the preparation of the mortgage.

In what cases, the issuance of mortgages can not be realized? The corresponding federal law names the following conditions:

• The subject of the mortgage is the property complex;
• The amount of debt on the mortgage is not determined, and there are also no conditions that would help determine this amount.

Particularly important is the content of the mortgage, which will be discussed later.

Contents of the mortgage

According to the current version of the law "On Mortgage", at the time of issuance to the original mortgagee, the mortgage must contain:

• Names and information identifying the identity of the mortgagor and the pledgee (the requirements for information will vary slightly depending on whether the natural or legal persons are parties to the contract);
• The title of the contract secured by the mortgage;
• Indication of the required mortgage amount, as well as the amount of interest;
• Indication of the terms of payment of the amount;
• Information required to identify the property for which a mortgage is established;
• Signatures of the parties to the contract, as well as information on the state registration of the mortgage agreement.

The compiler of the mortgage is fully liable for losses incurred in connection with the elimination of the mortgage or because of a mismatch of its validity. It is also worth noting that it is possible and cancellation of individual requirements of the document in question, if inconsistencies were identified almost immediately after the compilation.

State registration

Article 20 of the Federal Law on Mortgage as a Pledge of Real Estate provides for the state registration of the entire process. As you know, a mortgage can enter into legal force only after appropriate state registration. A notarized contract, signed by both parties to the transaction, is the source of mutual responsibilities.

In the case of a mortgage, in which the rights of the pledgee would be certified, the registration authority may require the mortgage itself, as well as the documents specified therein. As a result of registration, information on the new mortgagee will be included in the Unified State Register.

Use of property

The mortgagor who has received the right to use this or that property has the opportunity to extract from the subject of the contract all incomes and fruits, if such does not do harm to property and can not reduce its value. The creditor can not restrict the right to use the property of the mortgagor. What else can a debtor do?

According to the law on currency mortgages, the mortgagor is obliged to maintain the received property in good condition and in time to bear the costs of its maintenance - until the termination of the mortgage contract. In fact, these two duties are the main debtor's. In addition, it is worth noting the implementation of capital and current repairs, insurance processes, taking measures to protect the mortgaged property from damage or loss and much more. The law says that the pledgor is obliged to protect his property from the claims of third parties, and also to ensure his safety in every possible way.

Transfer of property

The sixth chapter of the draft law reads about the possibility of transferring the right to property pledged under a mortgage agreement to other citizens. It is about the processes of donation, sale or exchange, sold by the mortgagor. But how can this be planned? Here everything is not so difficult.

The main point, which is worth paying attention to, is an indication of the possibility of transfer of property in the mortgage. If such a condition in the document is not prescribed, the pledgor simply can not use all of the above rights (the exception is inheritance of property under the will).

The person who becomes the pledger's place acquires a number of duties. So, the pledge of property remains valid until the debtor fulfills all the duties assigned to it.

Separately, it is worth noting the responsibility imposed on mortgagors in case of violation of the rules. It is established by the Russian Civil Code.

Other norms of the law

Is it possible to accept a subsequent mortgage as collateral for securing a previous, outstanding mortgage? The law, in particular its seventh chapter, regulates such an opportunity, subject to certain nuances.

Chapter Nine refers to the right of the pledgee to apply for property for the satisfaction of legitimate claims that are not executed by debtors. It must happen in court. Chapter Ten regulates the sale of property through public bidding. The decision to sell is also made by the court. Finally, the eleventh chapter of the draft law "On Mortgage" examines in detail the types of individual land plots that are and are not subject to a mortgage.

Probably the most widely read among the Russian pledgers is Chapter 13, which narrates about the specifics of the mortgage of residential apartments and houses. This refers to the requirements for such types of property. This, for example, the presence of isolated rooms, the need for state registration of real estate and some other points. In this case, the mortgage repayment law is interpreted as the full performance of the pledgor's obligations.