REGISTRATION OF PROPERTY RIGHTS BY THE LENDER UNDER ARTICLE 37 OF THE MORTGAGE LAW. LEGAL ASPECT

 We all dream of our own home, but it is not always possible to buy it right away. In order not to wait a few years, many Ukrainians buy their dream home in a mortgage. However, do not always calculate their strength when paying off a mortgage debt. In this regard, creditors re-register ownership of property for themselves. How does this happen from the law and what regulations regulate it?

 Thus, the main legal acts regulating mortgage relations are the Civil Code of Ukraine and the Law of Ukraine “On Mortgage”. Article 37 of this Law defines the procedure for transferring ownership of a mortgage to the mortgagee. In other words, this article describes the procedure for the transfer of ownership of property in case of breach of the mortgage agreement.

≼ And how does it happen in practice? ≽

 And everything is very simple, usually in the mortgage agreement there is a reservation that in case of violation of the terms of the agreement the creditor has the right to re-register the ownership of the property which is under the mortgage on itself. That is, in order to re-register the property, the creditor does not even need to go to court to recover the debt or property that is under mortgage. It is enough for the creditor to present to the state registrar an agreement containing a reservation on the transfer of ownership of the property in case of breach of obligations, a copy of the claim sent to the debtor to eliminate violations and a document confirming that the debtor has received more than 30 days. Such registration of property rights takes place in accordance with the procedure for state registration of rights to immovable property and their encumbrances.

 That is, in fact, to re-register the mortgaged property to the lender to do so is very easy. But what to do to debtors? We return again to Art. 37 of the Law of Ukraine "On Mortgage" which states that the mortgagor may appeal the decision to re-register the property to the creditor. There are many such lawsuits in the courts of various instances in Ukraine. This means that only by going to court the debtor (mortgagor) can appeal the decision if he does not agree with it.

≼ In which case can you appeal the decision on such registration of ownership to the creditor? ≽

 Each situation is unique and individual, but it is often illegal to declare a transfer of ownership of mortgaged property, if the contract with such a reservation is signed by one of the spouses without the written permission of the other spouse. You can also appeal the assessment of the property on which the re-registration was carried out on the creditor.

≼ What about the land on which the subject of the mortgage is located? ≽

 Regarding the land plot, in Art. 37 of this Law states that in case of transfer of ownership of the property to the mortgagee, the ownership of the land on which the property is located also passes to the mortgagee. If the land is leased, the mortgagee becomes the new tenant. The basis for re-registration of ownership of land is an agreement to satisfy the mortgagee's claim or a clause contained in the mortgage agreement.