The loan and mortgage agreement does not lose its relevance, although the mentioned issue is perceived incorrectly by a certain part of society and ends up with serious consequences.
What should we know when signing a loan and mortgage agreement? What kind of risks must be considered in order not to get damaged?
The parties of the contract are the debtor and the credit or (the owner of the subject of the mortgage). To ensure the performance of the loan obligation, the parties agree that the creditor ensures the obligation to be performed by the debtor with the right of mortgage under the contractual relationship of loan and mortgage regulated by the Civil Code. The agreement between the parties is formed according to the form prescribed by law - necessarily in written and notarized.
At the notary’s office, the notary will thoroughly explain the terms of the contract to the parties. The amount of the contract is fixed in the national currency, Beisdes, one should take into account the determination of the interest of the loan, which is a very significant issue and in many cases is not defined and causes inconveniences between the parties. The return of interest and its amount is often perceived as unpopular, although it is also undisputed that lenders receive income through interest, therefore, their only financial motive for lending money is to receive interest. Thus, both the main claim and the % charged - fine and expenses (if this is stipulated by the contract) are considered to be secured by the mortgage. The purpose of the loan and real estate data must be written in the contract, which is confirmed by an extract from the public register.It should be taken into account that the mortgage is a transitory right and it is transferred to all new buyers in the same way as the original owner - that is, all new owners are responsible to the creditor in the same way as the original owner.
The costs and amount of notarial certification shall be limited in accordance with the law, based on the value of the real estate, according to the established rate. This agreement can be signed through an authorized person. The power of attorney is drawn up in a notarized form, both on-site at the notary office and remotely, using electronic communication.
The loan and mortgage agreement may provide for dispute resolution in several ways:Possibility of dispute resolution by arbitration; the possibility of resolving the dispute by the general court; Obtaining a notary's enforcement sheet; Possibility of sale of mortgaged property by a private specialist.
If the contract provides for the settlement of the dispute in arbitration, this means that the creditor has the right to refer to the arbitration specifically defined in the contract, but until the appellate court legally recognizes the arbitration decision and writes out the writ of execution, measures of a coercive nature (taking the property to auction) cannot be implemented.
All the above-mentioned issues should be carefully considered before the loan and mortgage agreement is signed between the parties, in order to avoid harmful legal consequences.
