Security interests in immovable property
Legal mortgages and liens on real estate: key changes
By Raphaël MORENON5 April 2025The reform of the law on security interests introduced by Order no. 2021-1192 of 15 September 2021 has radically altered the landscape of property security interests. Special real estate liens will be replaced by legal mortgages. The aim of this overhaul is to simplify and modernise a complex and sometimes archaic legal system. The stakes are high for sellers, lenders and purchasers of property. The disappearance of special real estate liens Special real estate liens are a thing of the past. The ordinance abolishes them purely and simply. These liens (on sellers, lenders and joint owners) had one major characteristic: they were retroactive. Once registered within the legal time limit, they took precedence on the date of the deed. This mechanism created legal uncertainty. Registrations made between the time the lien was created and its publication caused problems of ranking. The computerisation of land registration services has rendered this system obsolete. Registration deadlines have been reduced to the point where retroactivity has become superfluous. Liens arising before...
Court-ordered mortgages: legal and conservatory mortgages
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyThe world of mortgages is not limited to the guarantees voluntarily given as part of a property loan. Did you know that a court ruling can, in some cases, be the very source of a mortgage? Or that it is sometimes possible to take out a guarantee on a property even before you have obtained a mortgage?Terminating a mortgage: payment, discharge and other causes of extinction
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyA mortgage is not set in stone for eternity. Like any debt-related security, it has a lifespan, and a number of events can bring it to an end. Beyond its creation and initial registration, understanding how a mortgage is extinguished is essential. Whether you finally...The immovable mortgage: understanding the basics and the importance of advertising
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyHypothec is a term you hear a lot, whether in connection with a mortgage, securing a business debt or even in certain disputes. But what does this legal concept really mean? More than just a word, it is a powerful mechanism that is essential for securing large debts. To find out more...Setting up and registering a mortgage: the key stages in securing a debt
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertySetting up a mortgage can seem like a journey fraught with administrative and legal pitfalls. However, although it requires rigour and precision, the creation and registration of a mortgage follows a well-defined logic and stages. Understanding immovable property mortgages, their basic principles and the importance of publicising them is essential to...Owner of a mortgaged property: what are your rights and obligations?
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyOwning a property that is subject to a mortgage is a common situation, whether you have taken out a loan secured by the property yourself, or whether you have acquired a property that is already subject to a mortgage. While a mortgage does not dispossess you of your property, it does create a framework...Mortgages and trusts: the best tools for securing your property transactions
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyProperty transactions involve considerable sums of money. The risk of non-payment threatens every creditor. In this context, real estate securities offer effective protection. They guarantee you a right to a property in the event of default by the debtor. These legal mechanisms vary in complexity and effectiveness. Your choice will determine...Unpaid mortgage: the creditor's rights (preferential and resale rights)
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyA mortgage is a valuable guarantee for a creditor. But what happens in practice if the secured debt is not repaid on the due date? What levers does the creditor have at his disposal to recover the sums owed to him thanks to this property security? Far from being a mere mention...Real security for third parties: a renaissance of real surety?
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyFor a long time, the legal classification of security in rem constituted to guarantee the debt of another person has been the subject of major controversy in French law. Traditionally referred to as "real surety", this practice enabled a third party to guarantee the principal debtor's debt by assigning property belonging to him, or to a third party....The revolution in property security: disappearance of special liens and reform of mortgages
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyProperty security is the cornerstone of real estate lending, for both individuals and businesses. Order no. 2021-1192 of 15 September 2021 radically overhauled this essential area of security law, making structural changes including the outright abolition of real estate liens...Creditors' general right of lien: what you need to know
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyWhen it comes to creditors' rights, the general right of pledge is their minimum protection. This essential but limited mechanism helps explain why some creditors seek additional security. These guarantees, such as mortgages, have specific implications for the parties, such as exploring the rights and obligations...Liens in insolvency proceedings: who gets paid first?
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyWhen a company goes through a financial crisis and enters receivership, the normal interplay of security interests is disrupted. This is especially true for the owner of a mortgaged asset, whose rights and obligations are affected. The usual rules of the Civil Code give way to a new logic...Classification of property security interests: order and priorities
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertySecurity law organises competition between creditors. Who will be paid first if the debtor cannot honour all his debts? This is not a theoretical question. It determines the effectiveness of collateral and, for owners of mortgaged property, their rights and obligations. Why classify mortgages?The reform of security interests: what has changed?
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertySecurity law has undergone two major waves of reform in 15 years. The first in 2006 laid the foundations for modernisation. The second, in 2021, revolutionised certain key aspects. These changes have profoundly transformed the legal landscape for collateral, impacting in particular the rights and obligations of...The right of retention in property matters: a little-known legal weapon
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyThe right of retention is an effective but often neglected mechanism in security law. Although it is widely recognised for movable property, its application to immovable property remains more delicate, raising questions about the rights and obligations of the owner of an asset encumbered by a security on immovable property. A legal nature...Mortgages: the king of property collateral
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyMortgages dominate the real estate security landscape. This security, which does not involve dispossessing the debtor, offers the creditor effective protection. For the owner of the encumbered property, it implies a series of specific rights and obligations that it is essential to be familiar with. Definition and characteristics A mortgage is an accessory real right that encumbers...Property ownership as a guarantee: absolute protection
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyThe credit crisis is driving creditors to seek increasingly effective protection. In this context, security property is emerging as a powerful alternative to traditional guarantees. Ownership security: an old concept revisited Ownership security is based on a simple idea: to use the right of ownership itself...The property pledge: an outdated form of security
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyThe property pledge remains the forgotten property security. Unlike mortgages, which dominate the legal landscape, pledges of immovable property - formerly known as antichrèse - suffer from a marked lack of interest in practice. Definition and specific features Pledging of real estate is defined as "the assignment of real estate as security for an obligation with a...General property liens
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyDefinition and basis of liens on immovable property A lien on immovable property is a legal security interest. It confers a preferential right over the sale price of the debtor's property. It exists without being registered with the Land Registry. Liens are based on the quality of the claim. The...General presentation of property security interests
Law of guarantees, security interests and enforcement measures, Security interests in immovable propertyWhat is a charge on immovable property? A charge on immovable property is a security interest in immovable property. It protects a creditor against the risk of insolvency of its debtor. It allows the creditor to be paid in preference to other creditors. These guarantees are essential for mortgages and property transactions. Without them,...
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