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Finance

Finance providers

What are the typical providers of real estate financing in your jurisdiction? Are there any restrictions on who may provide financing?

The most usual providers of real estate financing are financial institutions. The restrictions on who may provide financing are set out in the relevant financial laws; such activities are restricted to permitted entities.  

Financing structures

What are the most common structures used to secure real estate financing and how are these security interests perfected?

The most common structure for securing real estate financing is a mortgage; this involves only minimum legal formalities (ie, to authenticate the mortgage as a public deed and then to register it at the Registration Office).  

What covenants are typically made in financing agreements?

The covenant typically made in financing agreements is to make no other guarantee in favour of another creditor.

Enforcement of security

How are security interests enforced in the event of default?

In the event of breach, the creditor of the main obligation backed by the mortgage may ask in a special judicial procedure for the seizure and auction of the property in order to pay the credit. The creditor will be paid following the lien priority order and the seniority of its credit. 

What is the typical timeframe for the enforcement of security?

The timeframe will vary depending on the type of property secured and the method of enforcement used. 

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