A mortgage is a debt instrument where the collateral is in the form of property. Mortgages usually relate to home ownership. This loan can help someone to buy a house even if they don’t have enough money. To know more about what a mortgage is, here’s a full description.
What is a Mortgage?
A mortgage or in English is also called a mortgage is a debt instrument that is carried out by giving property rights from the borrower to the lender as collateral for debt repayment obligations. In a mortgage, the borrower can still use or utilize the property. Later, if the debt or obligation has been paid in full, the dependent on the property will fall.
Mortgages are usually used by a person or business person to buy property when they do not have enough money. The purchase value of the property does not need to be paid in full in advance. Instead, the borrower must repay the debt over a period of which is usually years plus interest on the loan. If the debt is paid off, then the borrower will be free and the property can be taken back in its entirety.
Because mortgages are also included as rights or claims to property, when borrowing money, the borrower will use the property as collateral. That is, if the borrower fails to pay his debt or stops paying the mortgage, the lender may confiscate the property that is used as collateral.
Here are some of the objects of the mortgage, including:
1.Immovable objects and all accessories that can be transferred
2.The right to use an object and all its accessories
3.Right to hitch a ride and business rights
4.Land interest that is paid in money or paid with land proceeds
5.Flowers as before
6.Markets recognized by the government and the original rights attached to them
The Nature of the Mortgage
Mortgages have several properties. Here are some from mortgage:
Absolute nature. This means that in a mortgage there is a right that can be defended against anyone’s demands.
The nature of droit de suite or zaaksgevolg. This means that there are rights that always follow the different sirat in the hands of whichever party the object is located.
The nature of drit de preference. This means that a party has the right to prioritize the fulfillment of its receivables among other debtors.
Characteristics of a Mortgage
Mortgages also have several characteristics. Here are some of the characteristics of a mortgage:
The meaning is that a mortgage is an additional agreement whose nature depends on the main agreement regarding accounts payable.
This means that mortgages cannot be divided. This is because the mortgage is located for all objects that are the object of the mortgage. Even though some of the debt has been paid, some of the mortgage rights cannot be written off.
The point is that in a mortgage there is only the right to repay the debt. In a mortgage there is no right to object in it. However, the creditor can sell the object that is a guarantee on his own power if this is regulated in the agreement.
Ways to Get a Mortgage
According to the law, a mortgage can only be made if there is an authentic deed. That is, if someone wants to install a mortgage then the agreement must be made in the form of an official deed. This official deed must be made by the local Land Deed Making Officer (PPAT). The parties that can become PPAT are:
Notary appointed by the Minister of Home Affairs to become PPAT
A person who is not a notary but has been appointed by the Minister of Home Affairs to become a PPAT
The sub-district head who has been appointed to become PPAT ex officio
Principles in Mortgage
The principles in the mortgage are important principles and must be considered in making a mortgage. These principles include:
1. The principle of publicity
In this principle, it means that the mortgage must be registered in the general register. That means, there must be a party who knows about this mortgage. While the official deed of the mortgage must be registered with the Land Registration Section.
2. The principle of specialty
This principle means that mortgages can only be made for certain objects. The objects in question are to be bound as dependents. For example, an object that has a shape, is clearly located, and also has clear size and boundaries.
3. Principle of Ondeelbaarheid
In this principle, it means that the mortgage cannot be divided. The point is that the mortgage burdens the entire object being mortgaged. Even though the debt has been partially paid, this still cannot reduce the mortgage liability.
Agreement in Mortgage
Mortgage is something official and important. To ensure the credibility and interests of the creditor, there are certain promises that must be stated. This promise is contained in the mortgage deed, including:
Promise to sell the object of the mortgage on its own power
Promises regarding the lease of the object of the mortgage
Promise not to clean up
Promise mortgage object insurance
Rights and Obligations in Mortgage
In a mortgage agreement, both parties have their respective rights and obligations. These rights and obligations have been regulated by law in Indonesia. Here are some of the rights that a mortgage lender or borrower has:
You can still control the object of the mortgage as long as it doesn’t harm the debtor
May continue to use or take advantage of the hypothetical object
The right to receive loan money from lenders
Meanwhile, the following are some of the obligations imposed on the mortgage lender or borrower:
Pay the debt principal and interest on the loan
Paying fines if you are late in paying the principal and interest on the loan
Mortgage Agreement Cancellation Procedure
The mortgage agreement can be canceled if certain things happen. Here are a few things that can clear a mortgage agreement:
The agreement can end when the debt has been repaid
The agreement can end if the debtor releases voluntarily expressly and clearly
The agreement can be terminated based on a decision by the judge
Now that’s what is meant by a mortgage is also equipped with things related to it. Hopefully this way, understanding about mortgages will be better. Regards.
Thus the article about what is a mortgage and the definition of a mortgage, may be useful for all of you.