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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 typical providers for real estate financing are banking institutions, but there are no restrictions as to who may provide financing.

Financing structures

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

The most common security is a mortgage filed with the Land Registry.

What covenants are typically made in financing agreements?

Typically, the transfer of the property into the name of the purchaser that obtained a loan is simultaneous with the filing of the mortgage and the release of the funds to the seller by the mortgagee.

Enforcement of security

How are security interests enforced in the event of default?

Security interests are enforced through the civil courts.

What is the typical timeframe for the enforcement of security?

The process takes approximately seven years. The Immovable Property (Transfer and Mortgage) Law was amended in 2014 to streamline the process and it is hoped that this will significantly reduce delays. However, as yet, there has been little sign of this.

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