Mortgage Agreement

This professionally prepared mortgage agreement template (lien over real estate) serves as the basic document for securing a monetary claim against a property. By using this document, the lender acquires the right to settle its claim out of the value of the property if the borrower fails to meet the obligations.

The template has been prepared in line with the Ownership and Other Real Rights Act (Zakon o vlasništvu i drugim stvarnim pravima) and the Obligations Act (Zakon o obveznim odnosima), which allows you to regulate this important legal relationship transparently and safely.

The contract makes it simple and clear to define all the essential elements of the security, including the subject of the lien, the amount of the claim, the time limits, the rights and obligations of the parties and the conditions for enforcing the lien if the obligation is not met.

Key features

• Legal certainty: it gives the lender a clear legal basis if the borrower fails to meet the obligations.
• In line with the legislation: the document is fully aligned with Croatian law on real rights and obligations.
• Precision: it contains all the elements needed for the mortgage to be registered properly in the land register.
• Easy to adapt: the template is in Word format and you can easily adapt it to your own terms.

• Details of the contracting parties (lender and borrower).
• An exact description of the property over which the lien (mortgage) is created.
• A detailed description of the debt being secured (amount, maturity date and interest).
• A registration consent giving unconditional permission for the mortgage to be registered.
• The conditions on which the mortgage ends (deletion of the lien).

Advantages of using it

This template helps both parties establish a clear and secure relationship. It gives the lender strong security for repayment of the debt and gives the borrower transparency. It ensures that all the terms are known and agreed in advance, which avoids misunderstandings and makes the registration process easier.

Ownership and Other Real Rights Act (Zakon o vlasništvu i drugim stvarnim pravima) | Obligations Act (Zakon o obveznim odnosima)

1. What is a lien?
   A lien is a right which secures the creditor’s recovery of a claim out of the pledged asset (real estate or movable property) if the debtor fails to meet the obligations.
2. What types of lien are there?
   There are voluntary liens, voluntary court liens, compulsory court liens and statutory liens.
3. How is a lien created?
   Most often by contract between the owner of the asset and the creditor, which is then registered in the land register, but it can also be created by a court decision.
4. Can a lien be created over an asset that does not belong to the debtor?
   Yes. A lien may be created over an asset owned by a third party who is the pledgor.
5. How does the secured creditor obtain payment?
   If the claim falls due, the creditor may sell the pledged asset and be paid out of the proceeds of the sale, usually through the courts.
6. What happens if ownership of the pledged asset changes?
   The lien remains attached to the asset and passes to the new owner for as long as the claim exists.
7. Which documents are required for a lien agreement?
   A lien agreement must contain a description of the pledged asset, the amount of the claim, the rights and obligations of the parties and the conditions for enforcing the right.
8. Is a lien agreement an enforcement instrument?
   A notarial lien agreement is an enforcement instrument, which means that recovery can be carried out in summary court proceedings, whereas a private agreement is not.
9. How long does a lien last?
   A lien lasts until the claim is settled or until the lien is deleted from the land register.
10. How is a lien deleted?
    By deletion from the land register, usually after the claim has been settled and a deletion consent (brisovno očitovanje) has been issued.