Encumbrances (Section C)

MORTGAGE

Original name: Υποθηκη (IPOTHIKI)

Definition of this right: A mortgage is a right in rem which can be established on an alien immovable in order to secure a claim through the advantageous satisfaction of the creditor from the object (art. 1257 Civil Code).

Type of right according to national classification: “Security rights”

Observations: Apart from the mortgage, the Greek Law provides for the Pre-notice of a Mortgage (Προσημείωση Υποθήκης/ prosimiosi ipothikis), art. 1274 Civil Code.

The pre-notice of a mortgage is an “interim” mortgage which may be retrospectively turned into a definitive mortgage upon final adjudication of the claim. The pre-notice is not a right in rem as such, it is considered an interim measure and in practice it is more common than the mortgage itself. Title for registration of a pre-notice of a mortgage is either a court decision (issued following the procedure of interim measures) allowing such registration or a court payment order. Once the creditor has acquired a final court decision awarding the claim, the law provides for the possibility to turn retrospectively the pre-notice into a mortgage within an exclusive time limit of 90 days (art. 1277 Civil Code).

1.1. With respect to the mortgage liability, the Greek mortgage system prepares in general one option:

a) Extracts include the global amount including all liabilities due to the loan (loan, interests or other debts). [E.g. The loan is 100,000 € and interest at 20,000 € is agreed. LR extracts indicate that the secured debt is the sum of both concepts, i.e. 120,000€].

1.2. Regular LR information in this system also comprises ordinarily:

1. Deadline of the loan or credit or other contract which is basis of the mortgage.
2. Name of the mortgagee or creditor.
3. Name of the mortgagor or debtor.
4. Deed whereby mortgage was constituted or awarded.

However, there should not be expected any information about contract or basis of obligation guaranteed by a mortgage or the deadline of the mortgage.

1.3. With respect to the mortgage rank (preference of the mortgage in comparison with other mortgages or encumbrances), this LR system has the following criteria:

1. Mortgage rank depends on date of registration of the mortgage, so whoever may ascertain mortgage rank taking into consideration the information on the date of registration of the mortgage.
2. Information indicates specifically what the mortgage rank is, as a general rule.

In this LR system these are the following:

EASEMENT

Original name: Δουλεία (DOULIA)

Definition of this right: An easement is a (so-called) limited right in rem which grants the beneficiary the power to enjoy the utility of the object. Easements are considered to be “limited” rights in the sense that they do not offer a general enjoyment of the object but only a limited one.

Type of right according to national classification: “Rights in rem” (according to art. 973 Civil Code, rights in rem are the following: ownership, easements, pledge and mortgage).

Observations: There are many kinds of easements in Greek Law. The main distinction is among real and personal easements.

A real easement is a right in rem established or acquired over an immovable which grants the occasional owner of another immovable the power to enjoy its utility (art. 1118 Civil Code).

(i.e. right to way, servitude of waters, communication of buildings etc.)

A personal easement is a right in rem established in favour of a specific person which enjoys the utility of the immovable object.

The main personal easements are the usufruct (επικαρπία/ epikarpia), art. 1142 Civil Code, and the habitatio (easement of habitation, οίκηση/ikisi), art. 1183 Civil Code).

This information includes LR entries or notices related to restrictions decreed by judicial orders which mean either a claim on the property, or a challenge on the registered title, or an attachment of the property to debts as a result of judicial procedures, etc.

In this system:

a) Information on judicial restrictions or charges forms part of the regular land register extracts.
b) Means of formal publicity ordinarily contains information about the judicial order that leads to the registration of notices or caveats.

For purposes of the information, orders of attachment or seizure decreed by administrative authorities lead to notices or caveats.

LR information does not include tax liabilities (fiscal burdens).