In French law, the term “hypothèque” is used to describe the legal right granted to a creditor to use a property as security for a debt. This means that if the debtor fails to repay the debt, the creditor has the authority to take ownership of the property. There are three types of hypothèque: légale, which occurs when the state or a married woman has a claim on the property; judiciaire, which happens when a court orders the property to be used as collateral; and conventionelle, which is when the parties involved agree to use the property as security.
HYPOTHÈQUE is a legal term in French law that grants a creditor the right to take ownership of a property assigned to them as collateral for a debt. This right can be granted with or without possession of the property. There are three types of hypothèque: légale, judiciaire, and conventionelle. A married woman has the right to a légale hypothèque over her husband’s property. If a debtor fails to pay their debt, a creditor can obtain a judiciaire hypothèque over the property. Additionally, two parties can agree to a conventionelle hypothèque as part of a loan agreement. These examples demonstrate the various scenarios in which hypothèque can be utilised. In the first example, a married woman has the legal right to claim ownership of her husband’s property if he fails to repay his debts. In the second example, a creditor can acquire ownership of a property through a court order if the debtor fails to repay their debt. In the third example, two parties can agree to use a property as collateral for a loan, granting the creditor the right to claim ownership of the property if the debtor fails to repay the loan.
A hypothèque is a legal term for a mortgage or lien on real property to secure a debt.
When a person takes out a loan to purchase a property, the lender will often require a hypothèque to be placed on the property as security for the loan. If the borrower fails to repay the loan, the lender can foreclose on the property and sell it to recover the debt.
In some jurisdictions, the term hypothèque is used instead of mortgage, but they essentially serve the same purpose of securing a loan with real property.
A hypothèque can be removed once the underlying debt is paid off. This is typically done through a process called a release or discharge of the hypothèque.
If you default on a loan with a hypothèque, the lender can initiate foreclosure proceedings to take possession of the property and sell it to recover the debt.
Yes, a property with a hypothèque can be transferred to a new owner, but the hypothèque will typically remain on the property until the underlying debt is paid off.
Yes, it is possible to refinance a property with a hypothèque, but the new lender will typically require the old hypothèque to be paid off or subordinated to the new loan.
The duration of a hypothèque will depend on the terms of the loan agreement, but it typically lasts for the duration of the loan.
A hypothèque can be contested in certain circumstances, such as if there are errors in the documentation or if the lender has not followed proper legal procedures.
It is advisable to consult with a lawyer when dealing with a hypothèque, especially if you are facing foreclosure or need to negotiate the terms of the loan.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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