The Supreme Court reversed its prior position and extended the legal definition of mortgages, which can be registered up to a certain specific amount without being restricted to a certain underlying debt, to allow the registration of mortgages for a maximum amount to be used as security not only for debt defined in the Land Register Act (Grundbuchgesetz) but for all types of claims which may arise in the future provided that not only the pledgee and the debtor but also the legal title for such claim (for example, a specific contract) are defined in the mortgage document.
Until now it was only possible under the Austrian Land Register Act to register mortgages without being restricted to a certain debt for a few specific types of claims of the pledgee defined in the act. By the above judgement the court opened the possibility to register these mortgages as security for a wider range of claims whether presently existing or arising in the future.
This allows mortgages to be granted more freely and for the banks to extend more credit secured on land.
Supreme Court July 10 1996, 3 Ob 34/94
For further information on this topic please contact Louis Foramitti at Ortner Pöch Foramitti Rechtsanwälte OEG by telephone (+431 535 37 21) or by fax (+43 1 533 15 55) or by e-mail ([email protected]).
The materials contained on this web site are for general information purposes only and are subject to the disclaimer.