Change for mortgages on a future building

The security reform which will come into force on January 1, 2022 reverses the principle of the prohibition of mortgages on a future building, that is to say one of which one is not yet the owner.

A mortgage being constituted by a debtor in order to guarantee the creditor the payment of a debt, the debtor must be the owner of the building. Otherwise, the mortgage would be canceled. This principle is now reversed. It will now be possible, in principle, to grant a mortgage on a building, whether present or future (Civil Code, new article 2414). The old restrictions are completely removed. The mortgage can only be published when the debtor has become the owner of the building.

Until now, the notarial deed of loan, prior to the acquisition of the building, only provided for a promise of mortgage allocation and the mortgage securing the loan intended to finance the work had to be recorded after the ‘acquisition. The possibility of granting a mortgage on a future building is so far only the exception. It thus remains valid on undivided property (before the liquidation of joint ownership) or when the acquisition of the property is subject to a condition, or even on a building whose construction has started or is planned. The prohibition on mortgages on future property seemed obsolete, as future property could be the subject of other real security interests.

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