Conversion of a seizure into mortgage

The conversion of the pledge into a mortgage, following the extinction of the enforcement action resulting from the conclusion of an installment payment agreement between the parties, was a novelty introduced into our legal system by Law 41/2013, of June 26, which approved the New Code of Civil Procedure. By enshrining payment in installments as a cause for extinguishing the enforcement action, it was important to guarantee the protection of the enforcer's rights, particularly in the event of non-compliance with the agreement on the part of the enforced party, and to this end the enforcer was given the option of not waiving the guarantee given by the attachment made in the proceedings, converting it into a mortgage (in the case of real estate or movable property subject to registration) or a pledge (in other cases); and, from then on, the legal regime provided for in our legal system for such a guarantee in rem applies to it, particularly with regard to its effects and vicissitudes.

Pages: 108, Paperback, Our Knowledge Publishing