ASSIGNMENT AND PUBLICATION OF THE REAL ESTATE MORTGAGE SUBJECT TO THE NEW CIVIL CODE AND THE LAW NO. 7/1996 ON LAND REGISTRY AND REAL ESTATE PUBLICATION

Abstract

In addition to the usual accessory assignment of the mortgage (with the assignment of the mortgage claim) and the change of mortgage ranking, for the first time ever, the new Civil Code regulates the assignment of the mortgage separately from the mortgage ranking (Art. 2.358, Art. 2.427).
In essence, the assignment of the mortgage itself is not a simple assignment of rank in favour of another unsecured creditor of the assigned debtor (the mortgagee), but a transfer of the mortgage in favour of an unsecured creditor of the assigned debtor. However, it is possible to assign the mortgage both in favour of another unsecured creditor of the assigned debtor and in favour of the unsecured creditor of a debtor other than the assigned debtor and irrespective of whether the assigned debtor (mortgagee) is the principal debtor or a third party guarantor (collateral security).
Assignment of a mortgage (as well as a change in the ranking of the mortgage) cannot aggravate the situation of the assigned debtor (the mortgagee).
For publicity purposes, the transfer of the mortgage must be registered (or provisionally registered) in the land register on the basis of a notarised contract, and the change of rank must be noted on the basis of the contract of change of rank.