A Comparative Research Study of Official Mortgage and Possessory Mortgage

Abstract

A mortgage is a contract by which money is pledged as a debt, for this reason, it is said that a mortgage is a guarantee for the mortgagee’s claim. In other words, mortgage is the seizure or retention of a thing or property in exchange for a right so that the right can be obtained through it. The importance of this research study is that as the issue of mortgage exists in practice, many people face many challenges while practicing it in their daily lives. So, this research study will assist them fulfilling their needs in practicing mortgage. The main purpose of the research article is to explain and analyze the similarities and differences between the official mortgage and the possessory mortgage. The doctrinal research methodology and descriptive, explanatory, and analytical research approaches are used in this work. It is worth mentioning that this research study is entirely based on library sources. At the end of this research, the researcher has concluded that the official mortgage has a number of similarities and differences with the possessory mortgage. The possessory mortgage is the deposit of collateral to the mortgaged in exchange for the loan by the mutual consent of both mortgagor and mortgaged in which it is necessary that the mortgaged property will be transferred to the creditor and he will take care of it until the acquisition of loan. Furthermore, the possessory mortgage can be in both movable and immovable property and the official mortgage can only be in immovable property. The mortgaged property remains with the mortgagor. But if the debtor does not return the loan to the mortgaged, the mortgaged has the right to sell the mortgaged property. When the mortgaged property is sold, the mortgaged has the priority to get the loan back.