On the Effectiveness of Real Estate Mortgage Contracts without Mortgage Registration Abstract

Abstract

In the case where a mortgage contract on real estate is concluded but not registered, the validity of the mortgage contract shall be recognized if there is no defect in the validity of the contract itself. Before the creditor requests the mortgagee to assist in the registration of the mortgage based on the mortgage contract in force, the mortgagee does not constitute a breach of obligation and is not liable for compensation. If the mortgagee refuses the creditor's request for assistance in registering the mortgage, and the mortgagee is unable to do so for reasons attributable to the mortgagee, the mortgagee shall bear supplementary liability to the extent of the value of the mortgaged property if the debtor is unable to pay.