LEGAL MORTGAGE MODUS ACQUIRENDI
LEGAL MORTGAGE MODUS ACQUIRENDI

Summary/Abstract: In the Republic of Srpska and Bosnia and Herzegovina, the reform of material and procedural regulations related to real estate and rights to real estate was carried out in order to create favorable conditions for economic development. There is no economic development, nor any other development, without credit funds offered on the market by financial institutions (creditors), and in return they require adequate provision of the return of the given. The most common means of securing a loan is a mortgage, which should provide maximum security in the securing phase and especially in the settlement phase. Such effect of the mortgage can be achieved only through the constitutive effect of the principle of registration. Enrolled, i.e. book mortgage, regardless of the legal basis of its registration (agreement, law, decision of a court or other authority), provides legal certainty to all participants in the legal transaction of real estate. In this context, it is particularly important that the legal mortgage must be registered in the public real estate register and thus be equalized with all other forms of mortgage in accordance with the principle of Prior tempore potior iure.

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