Notice of a mortgage foreclosure procedure pending on the property

1. Does your national system admit such restriction?

This land register system envisages this kind of notice or includes the possibility of registering a notice as such.

2. In your system, once registered this restriction, does it block or freeze subsequent registrations (mostly the ones promoted by the owner of the property) until being removed?

The same explanation as described about attachment (question 2). The attachment is a part of the foreclosure procedure. In general, a notice of attachment does not prevent subsequent registrations in the land register, there is however one general exception. If the attachment only concerns a part of an immovable property, new application about mortgage, shall be rejected unless the Enforcement agency gives a special permission.

3. In your system, in principle, will the registration of this restriction be temporary (under a deadline) or indefinitely (it will be in force until being removed)?

In this system the duration of the registration of this restriction will be indefinite (until removed or deleted).

But if the attachment does not lead to a sale of the property, the Enforcement Agency has to send a notification to the land registry that the attachment shall be removed.

4. Indicate the national legal sources about this judicial restriction

• Registration of the notice of attachment in the land register is regulated in chapter 19 paragraph 29 p. 6 of the Swedish land code. General regulations about attachment are found in the Enforcement code, for example chapter 9 paragraph 14 (if the attachment concerns a mortgage).

5. Please, give us an idea about the characteristics of the registration of this restriction in your system

• The owner of a property which is encumbered with an attachment, may not dispose of the property to the disadvantage of the applicant. Once the notice of the attachment has been sent to the land registry and registered in the land register, it has legal effect (prerogative). If the property is sold or mortgaged thereafter, it does not affect the advantage of the applicant behind the attchment and can therefore be granted by the land registry.
• If the attachment/foreclosure procedure does not lead to a sale of the property, the Enforcement Agency has to send a notification to the land registry that the attachment shall be removed.
• If it leads to a sale of the property, this can be accomplished in different ways, either regularly during the procedure or through an auction. If the procedures leads to an executive auction, a special notice will be registered about this. When the decision about executive auction has gained legal force and its effect on the registered mortgages has been registered, the notice about attachment can be removed.
• The notice about executive auction will be removed when the new ownership has been registered.
• The registered notice about executive auction prevents the current owner from disposing of the property and an application for registration about ownership (chapter 20 paragraph 6 p. 7 of the Land Code), mortgage (chapter 22 paragraph 3 p. 4 of the land code) or registration of usufruct or easement (chapter 23 paragraph 2 p. 6 of the land code), will be rejected by the land registry.